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Is There a VA Advantage? Evidence from Dually Eligible Veterans

Author

Listed:
  • David C. Chan
  • David Card
  • Lowell Taylor

Abstract

We study public versus private provision of health care for veterans aged 65 and older who may receive care provided by the US Department of Veterans Affairs (VA) and in private hospitals financed by Medicare. Utilizing the ambulance design of Doyle et al. (2015), we find that the VA reduces 28-day mortality by 46 percent (4.5 percentage points) and that these survival gains are persistent. The VA also reduces 28-day spending by 21 percent and delivers strikingly different reported services relative to private hospitals. We find suggestive evidence of complementarities between continuity of care, health IT, and integrated care.

Suggested Citation

  • David C. Chan & David Card & Lowell Taylor, 2023. "Is There a VA Advantage? Evidence from Dually Eligible Veterans," American Economic Review, American Economic Association, vol. 113(11), pages 3003-3043, November.
    • Handle: RePEc:aea:aecrev:v:113:y:2023:i:11:p:3003-43
    DOI: 10.1257/aer.20211638
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    References listed on IDEAS

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    1. Olsen, Randall J, 1980. "A Least Squares Correction for Selectivity Bias," Econometrica, Econometric Society, vol. 48(7), pages 1815-1820, November.
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    Cited by:

    1. Ivan Badinski & Amy Finkelstein & Matthew Gentzkow & Peter Hull, 2023. "Geographic Variation in Healthcare Utilization: The Role of Physicians," NBER Working Papers 31749, National Bureau of Economic Research, Inc.
    2. Amitabh Chandra & Carrie H. Colla & Jonathan S. Skinner, 2023. "Productivity Variation and Input Misallocation: Evidence from Hospitals," NBER Working Papers 31569, National Bureau of Economic Research, Inc.
    3. Pablo Muñoz & Cristóbal Otero, 2025. "Managers and Public Hospital Performance," American Economic Review, American Economic Association, vol. 115(11), pages 4040-4074, November.
    4. Eric Chyn & Brigham Frandsen & Emily Leslie, 2025. "Examiner and Judge Designs in Economics: A Practitioner's Guide," Journal of Economic Literature, American Economic Association, vol. 63(2), pages 401-439, June.
    5. Zack Cooper & Joseph J. Doyle Jr. & John A. Graves & Jonathan Gruber, 2022. "Do Higher-Priced Hospitals Deliver Higher-Quality Care?," NBER Working Papers 29809, National Bureau of Economic Research, Inc.
    6. Lester Lusher & Tim Ruberg, 2024. "Unveiling the Unseen Illness: Public Health Warnings and Heat Stroke," Keio-IES Discussion Paper Series 2024-020, Institute for Economics Studies, Keio University.

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    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J14 - Labor and Demographic Economics - - Demographic Economics - - - Economics of the Elderly; Economics of the Handicapped; Non-Labor Market Discrimination

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