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Why Is End-of-Life Spending So High? Evidence from Cancer Patients

Author

Listed:
  • Dan Zeltzer

    (Tel Aviv University)

  • Liran Einav

    (Stanford University and NBER)

  • Amy Finkelstein

    (MIT and NBER)

  • Tzvi Shir

    (Clalit Health Services)

  • Salomon M. Stemmer

    (Rabin Medical Center and Tel Aviv University)

  • Ran D. Balicer

    (Clalit Health Services and Ben Gurion University)

Abstract

We study the sources of high end-of-life spending for cancer patients. Even among patients with similar initial prognoses, spending in the year postdiagnosis is over twice as high for those who die within the year than those who survive. Elevated spending on decedents is predominantly driven by higher inpatient spending, particularly low-intensity admissions. However, most such admissions do not result in death, making it difficult to target spending reductions. Furthermore, end-of-life spending is substantially more elevated for younger patients, compared to older patients with similar prognoses. Results highlight sources of high end-of-life spending without revealing any natural “remedies.â€

Suggested Citation

  • Dan Zeltzer & Liran Einav & Amy Finkelstein & Tzvi Shir & Salomon M. Stemmer & Ran D. Balicer, 2023. "Why Is End-of-Life Spending So High? Evidence from Cancer Patients," The Review of Economics and Statistics, MIT Press, vol. 105(3), pages 511-527, May.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:3:p:511-527
    DOI: 10.1162/rest_a_01066
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    Cited by:

    1. Angelini, Viola & Costa-Font, Joan, 2023. "Health and wellbeing spillovers of a partner's cancer diagnosis," Journal of Economic Behavior & Organization, Elsevier, vol. 212(C), pages 422-437.
    2. Lily Davies & Mark Kattenberg & Benedikt Vogt, 2023. "Predicting Firm Exits with Machine Learning: Implications for Selection into COVID-19 Support and Productivity Growth," CPB Discussion Paper 444, CPB Netherlands Bureau for Economic Policy Analysis.

    More about this item

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J17 - Labor and Demographic Economics - - Demographic Economics - - - Value of Life; Foregone Income

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