Cutting medicare hospital prices leads to a spillover reduction in hospital discharges for the nonelderly.

ABSTRACT:

Objective

To measure spillover effects of Medicare inpatient hospital prices on the nonelderly (under age 65).

Primary data sources

Healthcare Cost and Utilization Project State Inpatient Databases (10 states, 1995-2009) and Medicare Hospital Cost Reports.

Study design

Outcomes include nonelderly discharges, length of stay and case mix, staffed hospital bed-days, and the share of discharges and days provided to the elderly. We use metropolitan statistical areas as our markets. We use descriptive analyses comparing 1995 and 2009 and panel data fixed-effects regressions. We instrument for Medicare prices using accumulated changes in the Medicare payment formula.

Principal findings

Medicare price reductions are strongly associated with reductions in nonelderly dis

SUBMITTER: White C 

PROVIDER: S-EPMC4213050 | biostudies-literature | 2014 Oct

REPOSITORIES: biostudies-literature