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Does higher hospital cost imply higher quality of care?

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Date
2003-02-01
Authors
Picone, GA
Sloan, FA
Chou, SY
Taylor, DH
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Abstract
This study investigates whether higher input use per stay in the hospital (treatment intensity) and longer length of stay improve outcomes of care. We allow for endogeneity of intensity and length of stay by estimating a quasi-maximum-likelihood discrete factor model, where the distribution of the unmeasured variable is modeled using a discrete distribution. Data on elderly persons come from several waves of the National Long-Term Care Survey merged with Medicare claims data for 1984-1995 and the National Death Index. We find that higher intensity improves patient survival and some dimensions of functional status among those who survive.
Type
Journal article
Permalink
https://hdl.handle.net/10161/2122
Published Version (Please cite this version)
10.1162/003465303762687703
Publication Info
Picone, GA; Sloan, FA; Chou, SY; & Taylor, DH (2003). Does higher hospital cost imply higher quality of care?. Review of Economics and Statistics, 85(1). pp. 51-62. 10.1162/003465303762687703. Retrieved from https://hdl.handle.net/10161/2122.
This is constructed from limited available data and may be imprecise. To cite this article, please review & use the official citation provided by the journal.
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Scholars@Duke

Sloan

Frank A. Sloan

J. Alexander McMahon Distinguished Professor Emeritus of Health Policy and Management
Professor Sloan is interested in studying the subjects of health policy and the economics of aging, hospitals, health, pharmaceuticals, and substance abuse. He has received funding from numerous research grants that he earned for studies of which he was the principal investigator. His most recent grants were awarded by the Robert Wood Johnson Foundation, the Center for Disease Control, the Pew Charitable Trust, and the National Institute on Aging. Titles of his projects include, “Why Mature S
Taylor

Donald H. Taylor Jr.

Professor in the Sanford School of Public Policy
Don Taylor is a health policy scholar who has studied rural health, identification of underserved areas, and the economics of smoking and cessation. For the past 20 years his work has focused on how society cares for the elderly and to what effect on individuals, families, public programs and inter-generational wealth. More recently he has focused on archival research methods that help to illustrate the role of Race in our history—individual, institutional, national. An emerging interest i
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