Health Policy Manag.  2022 Sep;32(3):317-322. 10.4332/KJHPA.2022.32.3.317.

Analysis of Determinants of Hospital Closures: Focusing on Cox Proportional Hazard Model

Affiliations
  • 1School of Economics, University of Seoul, Seoul, Korea
  • 2Division of Health Policy and Management, Department of Public Health Science, Korea University Graduate School, Seoul, Korea
  • 3BK21 FOUR R&E Center for Learning Health Systems, Korea University, Seoul, Korea

Abstract

Background
Limited access to medical services causes problems in patients’ health and life. Also, hospital closures cause concentration towards general hospitals, which leads to worsening National Health Insurance finance. Therefore, hospital closure is an important topic to be analyzed.
Methods
This paper analyzed the factors that affect hospital closures using survival analysis with the data of 970 hospitals opened between 2010 and 2019 in Korea. The number of medical personnel, hospital rooms, sickbeds, and medical departments were used as explanatory variables.
Results
The number of medical personnel and hospital rooms increased the survival probability while the number of sickbeds and medical departments decrease the survival probability.
Conclusion
The results suggest that hospitals have economies of scale and diseconomies of scope in management.

Keyword

Health facility closure; Survival analysis; Economies of scale; Economies of scope
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