AffiliationUniv Arizona, Eller Coll Management
MetadataShow full item record
CitationTowner, M. (2020). Debt and bargaining outcomes: Evidence from us hospitals. Management Science, 66(5), 2083-2098. https://doi.org/10.1287/mnsc.2019.3291
RightsCopyright © 2019, INFORMS
Collection InformationThis item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at email@example.com.
AbstractUsing the healthcare industry as a novel laboratory, I study whether a firm's use of debt enhances its bargaining power during negotiations with nonfinancial stakeholders. I find that reimbursement rates negotiated between a hospital and insurers for two homogeneous procedures are higher when the hospital has more debt. This relation is stronger among hospitals with less bargaining power relative to insurers ex ante. The evidence is consistent with the idea that debt improves a firm's bargaining power.
Note12 month embargo; published online: 13 September 2019
VersionFinal accepted manuscript