Publications
Publications
- 2023
Healthcare Provider Bankruptcies
By: Samuel Antill, Jessica Bai, Ashvin Gandhi and Adrienne Sabety
Abstract
Healthcare firms are increasingly filing for Chapter 11 bankruptcy. Using two strategies, we show causal evidence that bankruptcies harm patients through increased worker turnover. First, in an online experiment, experienced nurses assess hypothetical employers and patient care scenarios. We randomly vary key details, holding everything else fixed. A bankruptcy filing causally increases voluntary departures by 39%. Replacing departing workers with new hires increases negative patient outcomes by 44%. Second, we compare observed outcomes before and after bankruptcy filings in a high-frequency difference-in-difference design. Using novel administrative data, we find a sharp post-bankruptcy increase in nurse turnover. Bankrupt firms replace departing workers almost one for one, but the worker inexperience adversely affects quality: health inspection violations increase and patient life expectancies decline after bankruptcy.
Keywords
Citation
Antill, Samuel, Jessica Bai, Ashvin Gandhi, and Adrienne Sabety. "Healthcare Provider Bankruptcies." Working Paper, November 2023.