That’s the intelligent title of latest American Financial Assessment publication by Cyrus Aghamolla, Pinar Karaca-Mandic, Xuelin Li, Richard T. Thakor. The summary is beneath.
This research examines the hyperlink between credit score provide and hospital well being outcomes. We use financial institution stress checks as exogenous shocks to credit score entry for hospitals which have lending relationships with examined banks. We discover that affected hospitals shift their operations to extend useful resource utilization following a adverse credit score shock however scale back the standard of their care to sufferers throughout a wide range of measures, together with a major improve in risk-adjusted readmission and mortality charges. The outcomes point out that entry to credit score can have an effect on the standard of well being care hospitals ship, pointing to essential spillover results of credit score market frictions on well being outcomes.
You may learn the total paper right here.
