IDEAS home Printed from
   My bibliography  Save this article

A two-part model of treatment for benign prostatic hyperplasia and the impact of innovation


  • W. D. Bradford
  • A. N. Kleit
  • M. A. Krousel-Wood
  • R. N. Re


Benign prostatic hyperplasia (BPHs) affects more than half of men who are at least 60 years old. Transurethral resection of the prostate (TURP) is the most common treatment. This article estimates the average costs of providing a TURP to a patient that chooses the procedure and the expected cost of a TURP irrespective of the actual treatment decision. It utilizes a modified two-part model. It first estimates the likelihood of receiving the TURP given a BPH diagnosis using a logit regression. The second step is to estimate the (log of) TURP cost for the population that actually received the procedure. For the TURP decision, data were extracted from the National Health Interview Survey (NHIS) 1986-1994 on 502 men with a diagnosis of BPH. For the cost model, HCIA discharge abstract data were used from five states on 26640 men who actually received a TURP in 1994. TURP was identified via CPT codes in the NHIS data. The cost of TURP was constructed using patient hospital charges and hospital-specific cost to charge ratios. It was found that patient characteristics and comorbidities are important determinants of the decision to receive, and costs of, TURP. Pharmacological alternatives to TURP significantly affect the likelihood that a person will choose the procedure. The predicted unconditional cost of TURP ranged from US$8908 to US$3832 (by state); the predicted conditional cost of TURP ranged from US$1163 to US$750. The results suggest that the cost associated with providing a TURP for the average man with BPH would be US$492 to US$1163, depending on the state of residence. It was found that estimating the costs using simple regression or ANOVA techniques will lead to biased results due to sample selection (which in this case range from US$3832 to US$8908).

Suggested Citation

  • W. D. Bradford & A. N. Kleit & M. A. Krousel-Wood & R. N. Re, 2002. "A two-part model of treatment for benign prostatic hyperplasia and the impact of innovation," Applied Economics, Taylor & Francis Journals, vol. 34(10), pages 1291-1299.
  • Handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1291-1299
    DOI: 10.1080/00036840110095409

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:applec:v:34:y:2002:i:10:p:1291-1299. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Longhurst). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.