Media Oversight and Hospital Behavior: Evidence from Local Newspaper Closures

This study examines how external media oversight influences healthcare delivery by analyzing hospital responses to local newspaper closures. Analyzing 167 closures from 2008 to 2018, we find that reduced scrutiny leads to significant changes in hospital operations, financial outcomes, and patient care. Treated hospitals exhibit 135 more discharges per 100 beds, a 3 percentage point (pp) increase in operating margin, a 0.9 pp rise in inpatient admission ratio, and a 0.4 pp increase in 30-day Medicare readmission rates. These results suggest a shift toward more aggressive and profit-oriented practices, potentially at the expense of care quality. Effects are concentrated among nonprofit and government hospitals and those with weaker community ties. Online media access does not offset the loss of local newspaper coverage. Our findings contribute to research on healthcare delivery and media as a governance mechanism, and support policies aimed at strengthening local journalism to improve transparency in hospital behavior.