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Does Higher Hospital Cost Imply Higher Quality of Care?

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Author Info

  • Gabriel A. Picone

    (University of South Florida)

  • Frank A. Sloan

    (Duke University)

  • Shin-Yi Chou

    (National Bureau of Economic Research)

  • Donald H. Taylor

    (New Jersey Institute of Technology)

Abstract

This study investigates whether higher input use per stay in the hospital (treatment intensity) and longer length of stay improve outcomes of care. We allow for endogeneity of intensity and length of stay by estimating a quasi-maximum-likelihood discrete factor model, where the distribution of the unmeasured variable is modeled using a discrete distribution. Data on elderly persons come from several waves of the National Long-Term Care Survey merged with Medicare claims data for 1984-1995 and the National Death Index. We find that higher intensity improves patient survival and some dimensions of functional status among those who survive. © 2003 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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Bibliographic Info

Article provided by MIT Press in its journal Review of Economics and Statistics.

Volume (Year): 85 (2003)
Issue (Month): 1 (February)
Pages: 51-62

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Handle: RePEc:tpr:restat:v:85:y:2003:i:1:p:51-62

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Web page: http://mitpress.mit.edu/journals/

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Cited by:
  1. Tekin, Erdal, 2005. "Child care subsidy receipt, employment, and child care choices of single mothers," Economics Letters, Elsevier, vol. 89(1), pages 1-6, October.
  2. Gemmill-Toyama M & Costa-Font J, . "Does Cost Sharing Affect the Quality of Pharmaceutical Care for the Elderly?," Health, Econometrics and Data Group (HEDG) Working Papers 09/04, HEDG, c/o Department of Economics, University of York.
  3. Silvia Balia & Andrew M. Jones, 2007. "Unravelling the influence of smoking initiation and cessation on premature mortality using a common latent factor model," Health, Econometrics and Data Group (HEDG) Working Papers 07/06, HEDG, c/o Department of Economics, University of York.
  4. Jan Clement & Vivian Valdmanis & Gloria Bazzoli & Mei Zhao & Askar Chukmaitov, 2008. "Is more better? An analysis of hospital outcomes and efficiency with a DEA model of output congestion," Health Care Management Science, Springer, vol. 11(1), pages 67-77, March.
  5. Gabriel Picone & Arseniy Yashkin & Thomas Mroz & Frank Sloan, 2013. "Screening for a Chronic Disease: A Multiple Stage Duration Model with Partial Observability," Working Papers 0213, University of South Florida, Department of Economics.
  6. Erdal Tekin, 2004. "Single Mothers Working at Night: Standard Work, Child Care Subsidies, and Implications for Welfare Reform," NBER Working Papers 10274, National Bureau of Economic Research, Inc.
  7. Costa Font, Joan & Gemmill Toyama, Marin, 2011. "Does cost sharing really reduce inappropriate prescriptions among the elderly?," Health Policy, Elsevier, vol. 101(2), pages 195-208, July.
  8. Joan Costa-i-Font & Marin Gemmill-Toyama, 2010. "Does Cost Sharing really Reduce Inappropriate Prescriptions?," CESifo Working Paper Series 3002, CESifo Group Munich.
  9. Xufeng Qian & Louise Russell & Elmira Valiyeva & Jane Miller, 2005. "New Evidence on Medicare's Prospective Payment System: A Survival Analysis based on the NHANES I Epidemiologic Followup Study," Departmental Working Papers 200506, Rutgers University, Department of Economics.
  10. MORIKAWA Masayuki, 2010. "Economies of Scale and Hospital Productivity: An empirical analysis of medical area level panel data," Discussion papers 10050, Research Institute of Economy, Trade and Industry (RIETI).
  11. John A. Romley & Neeraj Sood, 2013. "Identifying the Health Production Function: The Case of Hospitals," NBER Working Papers 19490, National Bureau of Economic Research, Inc.
  12. John A. Romley & Dana Goldman, 2008. "How Costly Is Hospital Quality? A Revealed-Preference Approach," NBER Working Papers 13730, National Bureau of Economic Research, Inc.
  13. Hauck, Katharina & Zhao, Xueyan & Jackson, Terri, 2012. "Adverse event rates as measures of hospital performance," Health Policy, Elsevier, vol. 104(2), pages 146-154.

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