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Is There a VA Advantage? Evidence from Dually Eligible Veterans

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  • 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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    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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