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Market Competition and Hospital Specialization in Inpatients with Disease of Circulatory System in Korea
Author Kim, Jae-Hyun Page 452-473 Date 2018-Jun

This study examines the effect of market competition on hospital specialization among inpatients with diseases of the circulatory system. Data used the national claim database from 2002 to 2013 by the National Health Insurance Service. A sample of 4,928 were analyzed at baseline (2002). Market competition was defined using Herfindahl-Hirschman Index (HHI) and hospital specialization was inner Herfindahl-Hirschman Index (IHI) and Category Medical Specialization (CMS) The primary analysis was based on generalized estimating equation regression model accounting for the correlation among individuals and hospitals within each region of hospital. IHI and CMS were significantly elevated (B: 0.1638, p<0.0001; 0.0047, p<.0001, respectively) in the region with high market competition, compared with those in the region with low market competition. Compared with low market competition, the odds ratio (OR) of the factor loading value of disease of the circulatory system in high and middle market competition was 1.0562 times higher (p<0.0026) and 1.3435 times higher (p<.0001), respectively. Our results demonstrate that an increase in market competition had a substantial effect on hospital specialization among inpatients with disease of the circulatory system. Our findings provide useful information to health policy makers and hospital managers. 

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