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risk adjustment

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  • Randall P. Ellis

Abstract

Risk adjustment is used in settings with uncertainty to make payments or allow comparisons of outcomes while controlling for exogenous risk factors that explain variations in the outcome of interest, such as spending, utilisation, quality or death. This article focuses on the conceptual and empirical uses of risk adjustment in health economics, where patient-level risk factors are commonly used to explain spending and other outcomes.

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This chapter was published in: Steven N. Durlauf & Lawrence E. Blume (ed.) , , chapter 1, pages , 2012,1st quarter update.

This item is provided by Palgrave Macmillan in its series The New Palgrave Dictionary of Economics with number v:6:year:2012:doi:3872.

Handle: RePEc:pal:dofeco:v:6:year:2012:doi:3872

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Related research

Keywords: adverse selection; biased selection; health economics; health insurance; health outcomes; life insurance; life tables;

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