Cost Implications of Hospital Unionization: A Behavioral Analysis / David S. Salkever.

By:

Salkever, David S

Contributor(s):

National Bureau of Economic Research

Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w0946.Publication details: Cambridge, Mass. National Bureau of Economic Research 1982.Description: 1 online resource: illustrations (black and white)Subject(s):

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Abstract: The growth of unionization among hospital workers was sharply accelerated by the 1974 amendments to the NLRA covering voluntary hospital workers. With continuing inflationary pressures in the hospital sector, the cost implications of the recent and projected growth of hospital unions is of some concern to policy-makers . This paper presents estimates of union cost impacts based on data from hospitals in the states of Maryland, Massachusetts, New York, and Pennsylvania. Cross-sectional regressions with data for 1975 yield positive union impacts of 3.3 percent on total costs, 4.1 to 5.9 percent on cost per case, and 6.1 percent on cost per day. Re-estimation of the model with data on changes over the 1971 -75 period yields similar results. We also find that the cost impact of unionization varies with the pattern of coverage (being lower for service employees and RN's) and with the extent of cost-based reimbursement. This suggests that future cost impacts of union growth may be moderated as prospective payment systems for hospital s become more widespread.

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Previous	nber w0943 Are Inflation Rates Different for the Elderly? /	nber w0944 Pensions as Severance Pay /	nber w0945 Bubbles, Rational Expectations and Financial Markets /	nber w0946 Cost Implications of Hospital Unionization: A Behavioral Analysis /	nber w0947 Domestic Saving and International Capital Movements in the Long Run and the Short Run /	nber w0948 Are High Income Individuals Better Stock Market Investors? /	nber w0949 A Synthesis of Keynesian, Monetary, and Portfolio Approaches to FlexibleExchange Rates /	Next

July 1982.

The growth of unionization among hospital workers was sharply accelerated by the 1974 amendments to the NLRA covering voluntary hospital workers. With continuing inflationary pressures in the hospital sector, the cost implications of the recent and projected growth of hospital unions is of some concern to policy-makers . This paper presents estimates of union cost impacts based on data from hospitals in the states of Maryland, Massachusetts, New York, and Pennsylvania. Cross-sectional regressions with data for 1975 yield positive union impacts of 3.3 percent on total costs, 4.1 to 5.9 percent on cost per case, and 6.1 percent on cost per day. Re-estimation of the model with data on changes over the 1971 -75 period yields similar results. We also find that the cost impact of unionization varies with the pattern of coverage (being lower for service employees and RN's) and with the extent of cost-based reimbursement. This suggests that future cost impacts of union growth may be moderated as prospective payment systems for hospital s become more widespread.