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The Effect of Hospital Nurse Staffing on Patient Health Outcomes: Evidence from California's Minimum Staffing Regulation

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Author Info

  • Andrew Cook
  • Martin Gaynor
  • Melvin Stephens, Jr.
  • Lowell Taylor

Abstract

Hospitals are currently under pressure to control the cost of medical care, while at the same time improving patient health outcomes. These twin concerns are at play in an important and contentious decision facing hospitals—choosing appropriate nurse staffing levels. Intuitively, one would expect nurse staffing ratios to be positively associated with patient outcomes. If so, this should be a key consideration in determining nurse staffing levels. A number of recent studies have examined this issue, however, there is concern about whether a causal relationship has been established. In this paper we exploit an arguably exogenous shock to nurse staffing levels. We look at the impact of California Assembly Bill 394, which mandated minimum levels of patients per nurse in the hospital setting. When the law was passed, some hospitals already had acceptable staffing levels, while others had nurse staffing ratios that did not meet mandated standards. Thus changes in hospital-level staffing ratios from the pre- to post-mandate periods are driven in part by the legislation. We find persuasive evidence that AB394 did have the intended effect of decreasing patient/nurse ratios in hospitals that previously did not meet mandated standards. However, our analysis suggests that patient outcomes did not disproportionately improve in these same hospitals. That is, we find no evidence of a causal impact of the law on patient safety.

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Bibliographic Info

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16077.

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Date of creation: Jun 2010
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Publication status: published as The E ect of Hospital Nurse Stang on Patient Health Outcomes: Evidence from California's Minimum Stang Regulation" (with Andrew Cook, Marty Gaynor, and Lowell Taylor) Journal of Health Economics , March 2012, Vol. 31, p.340-348 (See also NBER WP #16077 )
Handle: RePEc:nbr:nberwo:16077

Note: HC LS
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Cited by:
  1. Jonathan Gruber & Samuel A. Kleiner, 2010. "Do Strikes Kill? Evidence from New York State," NBER Working Papers 15855, National Bureau of Economic Research, Inc.
  2. Hanel, Barbara & Kalb, Guyonne & Scott, Anthony, 2014. "Nurses’ labour supply elasticities: The importance of accounting for extensive margins," Journal of Health Economics, Elsevier, Elsevier, vol. 33(C), pages 94-112.
  3. Ann P. Bartel & Ciaran S. Phibbs & Nancy Beaulieu & Patricia Stone, 2011. "Human Capital and Organizational Performance: Evidence from the Healthcare Sector," NBER Working Papers 17474, National Bureau of Economic Research, Inc.
  4. Beomsoo Kim & Minjee Kim, 2012. "The Mortality of Newborns and Nurse Staffing Levels," Discussion Paper Series 1204, Institute of Economic Research, Korea University.
  5. Eric Delattre & Jean-Baptiste Combès & Bob Elliott & Diane Skatun, 2012. "Hospital Staffing and Local Pay: an Investigation into the Impact of Local variations in the Competitiveness of Nurses Pay on the Staffing of Hospitals in France," THEMA Working Papers 2012-35, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.

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