An Empirical Study of Economies of Home Healthcare

Theresa I. Gonzales, Sacred Heart University


Objective: To apply the economic theory of economies of scope to the home healthcare industry.

Data Sources: Data on 488 observations obtained from the Cost Report (HCFA Form 1728-86) of all Connecticut state-licensed, Medicare-certified home health agencies.

Study Design: The Cost Report was the primary source of data for this study. Information on total cost, scope, and other related factors was collected. Logarithmic and nonlinear regression analyses were used to identify factors related to scope and also to test for economies of scope.