Quality Improvement Spillovers: Evidence from the Hospital Readmissions Reduction Program

Published Online:https://doi.org/10.1287/mnsc.2023.01062

References

  • Agrawal A, Mukherjee U, Muthulingam S (2020) Does organizational forgetting affect quality knowledge gained through spillover?—Evidence from the automotive industry. Production Oper. Management 29(4):907–934.CrossrefGoogle Scholar
  • Anderson D, Golden B, Jank W, Wasil E (2012) The impact of hospital utilization on patient readmission rate. Health Care Management Sci. 15(1):29–36.CrossrefGoogle Scholar
  • Andritsos DA, Tang CS (2014) Linking process quality and resource usage: An empirical analysis. Production Oper. Management 23(12):2163–2177.CrossrefGoogle Scholar
  • Antwi YA, Moriya AS, Simon KI (2015) Access to health insurance and the use of inpatient medical care: Evidence from the affordable care act young adult mandate. J. Health Econom. 39:171–187.CrossrefGoogle Scholar
  • Argote L (2012) Organizational Learning: Creating, Retaining and Transferring Knowledge (Springer Science & Business Media, Boston).Google Scholar
  • Argote L, Fahrenkopf E (2016) Knowledge transfer in organizations: The roles of members, tasks, tools, and networks. Organ. Behav. Human Decision Processes 136:146–159.CrossrefGoogle Scholar
  • Argote L, Ingram P (2000) Knowledge transfer: A basis for competitive advantage in firms. Organ. Behav. Human Decision Processes 82(1):150–169.CrossrefGoogle Scholar
  • Argote L, Lee S, Park J (2021) Organizational learning processes and outcomes: Major findings and future research directions. Management Sci. 67(9):5399–5429.LinkGoogle Scholar
  • Athey S, Imbens GW (2017) The state of applied econometrics: Causality and policy evaluation. J. Econom. Perspective 31(2):3–32.CrossrefGoogle Scholar
  • Barrett M, Wier L, Jiang H, Steiner C (2015) All-cause readmissions by payer and age, 2009–2013: Statistical brief #199. Accessed May 29, 2024, https://www.hcup-us.ahrq.gov/reports/statbriefs/sb199-Readmissions-Payer-Age.pdf.Google Scholar
  • Bertrand M, Duflo E, Mullainathan S (2004) How much should we trust differences-in-differences estimates? Quart. J. Econom. 119(1):249–275.CrossrefGoogle Scholar
  • Boccuti C, Casillas G (2017) Aiming for fewer hospital u-turns: The Medicare hospital readmission reduction program. Accessed May 29, 2024, https://www.kff.org/medicare/issue-brief/aiming-for-fewer-hospital-u-turns-the-medicare-hospital-readmission-reduction-program/.Google Scholar
  • Bohmer R, Knoop CI (2007) The challenge facing the US healthcare delivery system. HBS Case 9:606.Google Scholar
  • Bonner SE, Sprinkle GB (2002) The effects of monetary incentives on effort and task performance: Theories, evidence, and a framework for research. Accounting Organ. Soc. 27(4–5):303–345.CrossrefGoogle Scholar
  • Bradley EH, Curry L, Horwitz LI, Sipsma H, Thompson JW, Elma M, Walsh MN, et al. (2012) Contemporary evidence about hospital strategies for reducing 30-day readmissions: A national study. J. Amer. College Cardiology 60(7):607–614.CrossrefGoogle Scholar
  • Brewster AL, Cherlin EJ, Ndumele CD, Collins D, Burgess JF, Charns MP, Bradley EH, et al. (2016) What works in readmissions reduction: How hospitals improve performance. Medical Care 54(6):600–607.CrossrefGoogle Scholar
  • Bureau of Labor Statistics (2012) Consumer price index: December 2012. Accessed May 29, 2024, https://www.bls.gov/news.release/archives/cpi_01162013.pdf.Google Scholar
  • Bureau of Labor Statistics (2013) Consumer price index: December 2013. Accessed May 29, 2024, https://www.bls.gov/news.release/archives/cpi_01162014.pdf.Google Scholar
  • Bureau of Labor Statistics (2014) Consumer price index: December 2014. Accessed May 29, 2024, https://www.bls.gov/news.release/archives/cpi_01162015.pdf.Google Scholar
  • Cai W, Gallani S, Shin JE (2023) Incentive effects of subjective allocations of rewards and penalties. Management Sci. 69(5):3121–3139.LinkGoogle Scholar
  • Carey K (2015) Measuring the hospital length of stay/readmission cost trade-off under a bundled payment mechanism. Health Econom. 24(7):790–802.CrossrefGoogle Scholar
  • Carey K, Lin MY (2015) Readmissions to New York hospitals fell for three target conditions from 2008 to 2012, consistent with Medicare goals. Health Affairs 34(6):978–985.CrossrefGoogle Scholar
  • Carey K, Lin MY (2016) Hospital readmissions reduction program: Safety-net hospitals show improvement, modifications to penalty formula still needed. Health Affairs 35(10):1918–1923.CrossrefGoogle Scholar
  • Castaneda MA, Saygili M (2016) The health conditions and the healthcare consumption of the uninsured. Health Econom. Rev. 6(1):55.CrossrefGoogle Scholar
  • Centers for Medicare & Medicaid Services (2016) 2016 condition-specific measures updates and specifications report hospital-level 30-day risk-standardized readmission measures. Accessed May 29, 2024, http://aann.org/uploads/Condition_Specific_Readmission_Measures.pdf.Google Scholar
  • Centers for Medicare & Medicaid Services (2019) CMS quality strategy. Accessed May 29, 2024, https://www.cms.gov/medicare/quality-initiatives-patient-assessment-instruments/value-based-programs/value-based-programs.Google Scholar
  • Chen M, Grabowski DC (2019) Hospital readmissions reduction program: Intended and unintended effects. Medical Care Res. Rev. 76(5):643–660.CrossrefGoogle Scholar
  • Chen CJ, Savva N (2018) Unintended consequences of hospital regulation: The case of the hospital readmissions reduction program. Working paper, London Business School, London.Google Scholar
  • Chen C, Dasgupta S, Huynh TD, Xia Y (2023) Product market competition and corporate relocations: Evidence from the supply chain. Management Sci. 69(9):5147–5173.LinkGoogle Scholar
  • Chen LM, Jha AK, Guterman S, Ridgway AB, Orav EJ, Epstein AM (2010) Hospital cost of care, quality of care, and readmission rates: Penny wise and pound foolish? Arch. Internal Medicine 170(4):340–346.CrossrefGoogle Scholar
  • Christ MH, Sedatole KL, Towry KL (2012) Sticks and carrots: The effect of contract frame on effort in incomplete contracts. Accounting Rev. 87(6):1913–1938.CrossrefGoogle Scholar
  • Christensen HB, Floyd E, Maffett M (2020) The only prescription is transparency: The effect of charge-price-transparency regulation on healthcare prices. Management Sci. 66(7):2861–2882.LinkGoogle Scholar
  • Demeré BW, Krishnan R, Sedatole KL, Woods A (2016) Do the incentive effects of relative performance measurement vary with the ex ante probability of promotion? Management Account. Res. 30:18–31.CrossrefGoogle Scholar
  • Demiralp B, He F, Koenig L (2018) Further evidence on the system-wide effects of the hospital readmissions reduction program. Health Serv. Res. 53(3):1478–1497.CrossrefGoogle Scholar
  • Deore A, Holzhacker M, Krishnan R (2024) Direct and spillover effects of quality disclosure regulation: Evidence from California hospitals. Management Sci. 70(4):2477–2496.LinkGoogle Scholar
  • Deore A, Krishnan R, Nair A (2023) Virtuous spillover effects of quality penalties on the continuity of healthcare. Production Oper. Management 32(9):2846–2863.CrossrefGoogle Scholar
  • Desai NR, Ross JS, Kwon JY, Herrin J, Dharmarajan K, Bernheim SM, Krumholz HM, et al. (2016) Association between hospital penalty status under the hospital readmission reduction program and readmission rates for target and nontarget conditions. JAMA 316(24):2647–2656.CrossrefGoogle Scholar
  • Ding DX (2014) The effect of experience, ownership and focus on productive efficiency: A longitudinal study of US hospitals. J. Oper. Management 32(1–2):1–14.CrossrefGoogle Scholar
  • Elixhauser A, Steiner C, Palmer L (2015) Clinical classifications software. Accessed May 29, 2024, http://www.hcup-us.ahrq.gov/toolssoftware/ccs/ccs.jsp.Google Scholar
  • European Commission–Health and Food Safety (2022) Goodbye E171: The EU bans titanium dioxide as a food additive. Accessed May 29, 2024, https://ec.europa.eu/newsroom/sante/items/732079/en.Google Scholar
  • Figueroa JF, Joynt KE, Zhou X, Orav EJ, Jha AK (2017) Safety-net hospitals face more barriers yet use fewer strategies to reduce readmissions. Medical Care 55(3):229–235.CrossrefGoogle Scholar
  • Forker E, Grabner I, Sedatole K (2020) Does learning by disaggregating accelerate learning by doing? The effect of forecast disaggregation on the rate of improvement in demand forecast accuracy. Working paper, Emory University, Atlanta.Google Scholar
  • Freeman M, Savva N, Scholtes S (2021) Economies of scale and scope in hospitals: An empirical study of volume spillovers. Management Sci. 67(2):673–697.LinkGoogle Scholar
  • Gallani S (2023) Conduit incentives: Eliciting cooperation from workers outside of managers’ control. Accounting Rev. 98(3):175–202.CrossrefGoogle Scholar
  • Gupta A (2021) Impacts of performance pay for hospitals: The readmissions reduction program. Amer. Econom. Rev. 111(4):1241–1283.CrossrefGoogle Scholar
  • Handfield RB, Krause DR, Scannell TV, Monczka RM (2000) Avoid the pitfalls in supplier development. Sloan Management Rev. 41(2):37–49.Google Scholar
  • Hansen LO, Young RS, Hinami K, Leung A, Williams MV (2011) Interventions to reduce 30-day rehospitalization: A systematic review. Ann. Internal Medicine 155(8):520–528.CrossrefGoogle Scholar
  • Harris L, Majerczyk M, Newman AH (2018) An examination of how the effort-inducing property of incentive compensation influences performance in multidimensional tasks. J. Econom. Behav. Organ. 149:185–196.CrossrefGoogle Scholar
  • Health Services Cost Review Commission (2011) Template for review and negotiation of an admission-readmission revenue (ARR) hospital payment constraint program. Accessed May 29, 2024, https://hscrc.maryland.gov/documents/pdr/ApprovedPolicyPapersStaffRecommendations/2011/01/ARR_Template_RecommendationFinal_adopted_01-12-11.pdf.Google Scholar
  • Healthcare Cost and Utilization Project (2016) Introduction to the HCUP nationwide readmissions database (NRD) 2014. Accessed May 29, 2024, https://www.hcup-us.ahrq.gov/db/nation/nrd/Introduction_NRD_2014.pdf.Google Scholar
  • Healthcare Cost and Utilization Project (2018) Cost-to-charge ratio files. Accessed May 29, 2024, https://www.hcup-us.ahrq.gov/db/state/costtocharge.jsp.Google Scholar
  • Hecht G, Tafkov I, Towry KL (2012) Performance spillover in a multitask environment. Contemporary Accounting Res. 29(2):563–589.CrossrefGoogle Scholar
  • Holmstrom B, Milgrom P (1991) Multitask principal–agent analyses: Incentive contracts, asset ownership, and job design. J. Law Econom. Organ. 7(special_issue):24–52.Google Scholar
  • Jenkins GD Jr, Mitra A, Gupta N, Shaw JD (1998) Are financial incentives related to performance? A meta-analytic review of empirical research. J. Appl. Psych. 83(5):777.CrossrefGoogle Scholar
  • Jiang JX, Krishnan R, Bai G (2023) Price transparency in hospitals: Current research and future directions. JAMA Network Open 6(1):e2249588.CrossrefGoogle Scholar
  • Jung SM, Shin JY (2022) Social performance incentives in mission-driven firms. Management Sci. 68(10):7631–7657.LinkGoogle Scholar
  • Kim J, Valentine K (2021) The innovation consequences of mandatory patent disclosures. J. Accounting Econom. 71(2–3):101381.CrossrefGoogle Scholar
  • Kong D, Lin C, Wei L, Zhang J (2022) Information accessibility and corporate innovation. Management Sci. 68(11):7837–7860.LinkGoogle Scholar
  • Kripalani S, Theobald CN, Anctil B, Vasilevskis EE (2014) Reducing hospital readmission rates: Current strategies and future directions. Annu. Rev. Medicine 65:471–485.CrossrefGoogle Scholar
  • Krishnan R, Ramasubramanian H (2023) Factors that influence the learning curve: Evidence from cost behavior in clinical labs. Contemporary Accounting Res. 40(1):257–291.CrossrefGoogle Scholar
  • Kuntz L, Scholtes S, Sülz S (2019) Separate and concentrate: Accounting for patient complexity in general hospitals. Management Sci. 65(6):2482–2501.LinkGoogle Scholar
  • Lapré MA, Mukherjee AS, Van Wassenhove LN (2000) Behind the learning curve: Linking learning activities to waste reduction. Management Sci. 46(5):597–611.LinkGoogle Scholar
  • Lee KC, Sethuraman K, Yong J (2015) On the hospital volume and outcome relationship: Does specialization matter more than volume? Health Services Res. 50(6):2019–2036.CrossrefGoogle Scholar
  • Li G, Rajagopalan S (1998) Process improvement, quality, and learning effects. Management Sci. 44(11-part-1):1517–1532.LinkGoogle Scholar
  • Lu SF (2012) Multitasking, information disclosure, and product quality: Evidence from nursing homes. J. Econom. Management Strategy 21(3):673–705.CrossrefGoogle Scholar
  • Mellor J, Daly M, Smith M (2017) Does it pay to penalize hospitals for excess readmissions? Intended and unintended consequences of Medicare’s hospital readmissions reductions program. Health Econom. 26(8):1037–1051.CrossrefGoogle Scholar
  • Mohnen M (2022) Stars and brokers: Knowledge spillovers among medical scientists. Management Sci. 68(4):2513–2532.LinkGoogle Scholar
  • Muralidharan K, Sundararaman V (2011) Teacher performance pay: Experimental evidence from India. J. Political Econom. 119(1):39–77.CrossrefGoogle Scholar
  • Muthulingam S, Agrawal A (2016) Does quality knowledge spillover at shared suppliers? An empirical investigation. Manufacturing Service Oper. Management 18(4):525–544.LinkGoogle Scholar
  • Nembhard IM, Tucker AL (2011) Deliberate learning to improve performance in dynamic service settings: Evidence from hospital intensive care units. Organ. Sci. 22(4):907–922.LinkGoogle Scholar
  • Niewoehner III RJ, Staats BR (2022) Focusing provider attention: An empirical examination of incentives and feedback in flu vaccinations. Management Sci. 68(5):3680–3702.LinkGoogle Scholar
  • Norton EC, Li J, Das A, Chen LM (2018) Moneyball in Medicare. J. Health Econom. 61:259–273.CrossrefGoogle Scholar
  • Philbin EF, Mccullough PA, Dec GW, Disalvo TG (2001) Length of stay and procedure utilization are the major determinants of hospital charges for heart failure. Clinical Cardiology 24(1):56–62.CrossrefGoogle Scholar
  • Polverejan E, Gardiner JC, Bradley CJ, Holmes-Rovner M, Rovner D (2003) Estimating mean hospital cost as a function of length of stay and patient characteristics. Health Econom. 12(11):935–947.CrossrefGoogle Scholar
  • Reinhardt UE (2006) The pricing of US hospital services: Chaos behind a veil of secrecy. Health Affairs 25(1):57–69.CrossrefGoogle Scholar
  • Ryan AM, Krinsky S, Maurer KA, Dimick JB (2017) Changes in hospital quality associated with hospital value-based purchasing. New England J. Medicine 376(24):2358–2366.CrossrefGoogle Scholar
  • Schilling MA, Vidal P, Ployhart RE, Marangoni A (2003) Learning by doing something else: Variation, relatedness, and the learning curve. Management Sci. 49(1):39–56.LinkGoogle Scholar
  • Senot C, Chandrasekaran A, Ward PT, Tucker AL, Moffatt-Bruce SD (2015) The impact of combining conformance and experiential quality on hospitals’ readmissions and cost performance. Management Sci. 62(3):829–848.LinkGoogle Scholar
  • Stecher BM, Camm F, Damberg CL, Hamilton LS, Mullen KJ, Nelson C, Sorensen P, et al. (2012) Toward a culture of consequences: Performance-based accountability systems for public services. Rand Health Quart. 2(1):5.Google Scholar
  • The Patient Protection and Affordable Care Act (2010) Public law no. 111-148, 124 stat. 119. Accessed May 29, 2024, https://www.congress.gov/111/plaws/publ148/PLAW-111publ148.pdf.Google Scholar
  • Tucker AL, Nembhard IM, Edmondson AC (2007) Implementing new practices: An empirical study of organizational learning in hospital intensive care units. Management Sci. 53(6):894–907.LinkGoogle Scholar
  • Vanberkel PT, Boucherie RJ, Hans EW, Hurink JL, Litvak N (2012) Efficiency evaluation for pooling resources in healthcare. OR Spectrum 34(2):371–390.CrossrefGoogle Scholar
  • Vera A, Kuntz L (2007) Process-based organization design and hospital efficiency. Health Care Management Rev. 32(1):55–65.CrossrefGoogle Scholar
  • Wahl TS, Hawn MT (2017) How do we prevent readmissions after major surgery? Adv. Surgery 51(1):89–100.CrossrefGoogle Scholar
  • Wang J, Li G, Hui KL (2022) Monetary incentives and knowledge spillover: Evidence from a natural experiment. Management Sci. 68(5):3549–3572.LinkGoogle Scholar
  • Wasfy JH, Zigler CM, Choirat C, Wang Y, Dominici F, Yeh RW (2017) Readmission rates after passage of the hospital readmissions reduction program: A pre–post analysis. Ann. Internal Medicine 166(5):324–331.CrossrefGoogle Scholar
  • Wennberg JE, Bronner K, Skinner JS, Fisher ES, Goodman DC (2009) Inpatient care intensity and patients’ ratings of their hospital experiences. Health Affairs 28(1):103–112.CrossrefGoogle Scholar
  • Wooldridge JM (2010) Econometric Analysis of Cross Section and Panel Data (MIT Press, Cambridge, MA).Google Scholar
  • Zuckerman RB, Sheingold SH, Orav EJ, Ruhter J, Epstein AM (2016) Readmissions, observation, and the hospital readmissions reduction program. New England J. Medicine 374(16):1543–1551.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.