E3 Journal of Business Management and Economics
E3 Journal of Business Management and Economics Vol. 4 (1) pp. 020-030, January 2013; © E3 Journals; ISSN 2141-7482
Who are the Patients? Exploring Approaches to Rural Hospital Market Area Determination
Ryan M Yonk1 * , Roberta Q Herzberg2 , Chris Fawson3 , Christopher Martin41 Department of Political Science, Southern Utah University, 351 West University Blvd GC 406 Cedar City Utah, PH 435-586-7961, FAX 435-586-1925
2 Department of Political Science, Utah State University, 0725 Old Main Hill Logan Utah 84322
3 Department of Economics and Finance Utah State University, 0725 Old Main Hill Logan Utah 84322
4 Institute of Political Economy, Utah State University, 0725 Old Main Hill Logan Utah 84322
*Corresponding Author E-mail: ryanyonk@suu.edu
Accepted 18 December 2012
Abstract
For rural hospitals, market area determination is an essential step in crafting effectual policy and furthering research. Competing methodologies for determining a hospital’s market area produce different results. Using a sample research question dealing with the overlap of public lands and rural hospital market areas, we use a Breaking Point model and a Zip Code model to determine the market area for rural hospitals in 6 western states. Using GIS analysis, we overlaid these market areas with public lands to determine the percentage of market area comprised of public land. We find the difference in the variables of interest between the models to be significant at the 0.05 level. We propose a standard for approaching and choosing from competing models in the methodological steps of future research and policy: 1) A description of several potential models available for the analysis; 2) A critical evaluation of each model’s inherent strengths and weaknesses; 3) A heuristic comparison of the applicability of each model to the specific problem; and 4) A defense of (and acknowledgment of threats to) the chosen model’s validity in reference to the specific issue addressed by the research or agency.
Keywords: Area Determination, Health Services Research, Hospitals, Health Policy
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