We further explore the salience of hospital incentives to adopt advanced technologies through a preliminary analysis of the determinants of a hospital’s share of ambulance-transported cardiac patients in a given county. We find evidence that a hospital’s “market share” is sensitive both to its overall level of emrgency room technology as well as its level of cardiac-specific technology. In addition, increases in the level of technology by rival hospitals (other hospitals in the same county) have a negative impact on hospital market share.
The remainder of the paper is organized as follows. In Section П, we motivate our analysis more fully by introducing the institutional context of emergency response systems, outlining the principal technological choices faced by these systems and local hospitals, and suggesting the main economic issues which arise in the analysis of these systems. Section in presents the data which we will use to conduct the analysis. Sections IV, V, and VI consider the determinants of adoption of emergency response systems, our analysis of productivity, and the role of the emergency response system in allocating patients to hospitals. Our concluding remarks suggest a number of directions for future research. credit