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Estimating Heterogeneity in the Benefits of Medical Treatment Intensity

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Author Info
William N. Evans
Craig L. Garthwaite
Abstract

Federal and state laws passed in the late 1990 increased considerably postpartum stays for newborns. Using all births in California over the 1995-2001 period, 2SLS estimates suggest that for the average newborn impacted by the law, increased treatment intensity had modest and statistically insignificant (p-value>0.05) impacts on readmission probabilities. Allowing the treatment effect to vary by pre-existing conditions or the pre-law propensity score of being discharged early, two objective measures of medical need, demonstrates that the law had large and statistically significant impacts for those with the greatest likelihood of a readmission. These results demonstrate heterogeneity in the returns to greater treatment intensity, and the returns to the average and marginal patient vary considerably.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 15309.

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Date of creation: Sep 2009
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Handle: RePEc:nbr:nberwo:15309

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Find related papers by JEL classification:
I10 - Health, Education, and Welfare - - Health - - - General
I12 - Health, Education, and Welfare - - Health - - - Health Production
I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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This page was last updated on 2009-12-5.

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