The impact of budget cuts on individual patient health: Causal evidence from hospital closures

Public finance constraints following the 2008 financial crisis in Europe often affected the hospital sector. This paper investigates i) the causal health impacts of reduced hospital supply, and ii) possible mechanisms to explain these. Using a staggered difference-in-differences framework, we study the effects of hospital closures on outcomes of all heart attack patients admitted to an Italian hospital between 2008 and 2015. Results show that closures increased in-hospital mortality by 10 % and length-of-stay by 0.3 days, but had no impact on readmissions. We explore potential mechanisms using different estimation approaches, and show that increased travel time following closures explains most of the mortality effect.

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Publication Details

Journal
Journal of Health Economics
Published
2025-02-15
DOI
https://doi.org/10.1016/j.jhealeco.2025.102975
Citations
4
Primary Topic
Healthcare Policy and Management
Type
article
Field-Weighted Citation Impact
12.52

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article

The impact of budget cuts on individual patient health: Causal evidence from hospital closures

Nirosha Elsem Varghese, Anna‐Theresa Renner, Simone Ghislandi
4 citations
Journal of Health Economics
Healthcare Policy and Management
12.52
article

The impact of budget cuts on individual patient health: Causal evidence from hospital closures

Nirosha Elsem Varghese, Anna‐Theresa Renner, Simone Ghislandi
article en
4 citations

Abstract

Public finance constraints following the 2008 financial crisis in Europe often affected the hospital sector. This paper investigates i) the causal health impacts of reduced hospital supply, and ii) possible mechanisms to explain these. Using a staggered difference-in-differences framework, we study the effects of hospital closures on outcomes of all heart attack patients admitted to an Italian hospital between 2008 and 2015. Results show that closures increased in-hospital mortality by 10 % and length-of-stay by 0.3 days, but had no impact on readmissions. We explore potential mechanisms using different estimation approaches, and show that increased travel time following closures explains most of the mortality effect.

Journal of Health EconomicsVol. 101
TU Wien (AT), Bocconi University (IT)
H2020 Marie Skłodowska-Curie Actions
Openalex Percentile: Top 2%
Healthcare Policy and Management
12.52
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