Abstract
A number of False Claims Act lawsuits have alleged that managers at for-profit hospitals pressured physicians, using feedback and manipulation of defaults, to admit patients unnecessarily from the emergency department. Using 100% hospital records from Florida for 2015-2017, we estimate that admission rates were 7 percentage points (20%) higher at for-profit hospitals. We additionally describe admission rate trends from 2007-2017 at two hospital systems that paid large penalties to the Department of Justice for unnecessary admissions. The timing of pre- and post-investigation changes in admission rates and our cross-sectional estimates are consistent with allegations that administrators influenced physicians’ admission decisions.
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