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Regionalization of Cardiac Services and the Responsiveness of Treatment Choices

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  • Justin G. Trogdon

    (School of Economics, University of Adelaide)

Abstract

Efforts to regionalize cardiac services can increase access costs for patients. This study is the first to quantify this trade off by estimating a demand model for surgery services that is used simulate the effect of centralization of cardiac services on hospital and treatment choices. The model is estimated using a sample of Medicare beneficiaries from the Cooperative Cardiovascular Project. Regulation policies that alter both the quality of providers and access to the providers, such as minimum volume thresholds, need to consider that patients will respond to changes in both dimensions.

Suggested Citation

  • Justin G. Trogdon, 2004. "Regionalization of Cardiac Services and the Responsiveness of Treatment Choices," School of Economics Working Papers 2004-03, University of Adelaide, School of Economics.
  • Handle: RePEc:adl:wpaper:2004-03
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    File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2004-03.pdf
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    References listed on IDEAS

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    1. Daniel P. Kessler & Mark B. McClellan, 2000. "Is Hospital Competition Socially Wasteful?," The Quarterly Journal of Economics, Oxford University Press, vol. 115(2), pages 577-615.
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    3. Hodgkin, Dominic, 1996. "Specialized service offerings and patients' choice of hospital: The case of cardiac catheterization," Journal of Health Economics, Elsevier, vol. 15(3), pages 305-332, June.
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    5. Ai, Chunrong & Norton, Edward C., 2003. "Interaction terms in logit and probit models," Economics Letters, Elsevier, vol. 80(1), pages 123-129, July.
    6. Tay, Abigail, 2003. " Assessing Competition in Hospital Care Markets: The Importance of Accounting for Quality Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 34(4), pages 786-814, Winter.
    7. Dranove, David & Satterthwaite, Mark A., 2000. "The industrial organization of health care markets," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 20, pages 1093-1139 Elsevier.
    8. McGuire, Thomas G., 2000. "Physician agency," Handbook of Health Economics,in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 9, pages 461-536 Elsevier.
    9. Dracup, Kathleen & Moser, Debra K. & Eisenberg, Mickey & Meischke, Hendrika & Alonzo, Angelo A. & Braslow, Allan, 1995. "Causes of delay in seeking treatment for heart attack symptoms," Social Science & Medicine, Elsevier, vol. 40(3), pages 379-392, February.
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    Cited by:

    1. Justin G. Trogdon, 2009. "Demand For And Regulation Of Cardiac Services," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(4), pages 1183-1204, November.

    More about this item

    Keywords

    heart attack; Medicare; volume; discrete choice estimation;

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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