Does Service Mix or Payer Mix Matter More in Peer Formation? Empirical Evidence from Primary Care Community Clinics

Abstract

A financial statement comparability-based benchmarking analysis is undertaken to empirically assess  whether a health care organization’s service mix, or its patient mix (as defined by a patient’s primary  insurer) matter relatively more in the formation of peers. Data for the study are drawn from primary care  community clinics (PCCCs) operating in the State of California in 2022. Our findings are twofold. First,  both patient mix and service mix characteristics under the PCCC’s control significantly impact financial  statement comparability, and account for as much as 40 percent of the formation of financial statement  comparability peer rankings. Second, differences in payer mix across firms are more likely than service  mix differences in determining the closeness of PCCCs peers.