ACADEMIC HEALTH CENTERS IN COMPETITIVE MARKETS

Academic health center (AHC) hospitals and other major teaching hospit als have funded a portion of their academic missions through patient c are revenues. Using all-payer state discharge data, this DataWatch pre sents information on how these institutions are being affected by mark et changes. Although AHCs are not as successful as other hospitals are in attracting managed care patients, competitive pressures had not er oded AHCs' financial status as of 1994. However, increasing enrollment in managed care and potential changes in both Medicare and Medicaid s uggest that pressure on the financing of these institutions' social mi ssions will continue to grow over time.