Racial and Ethnic Disparities in Access to and Quality of Health Care

Reviews research on racial and ethnic disparities in health care access and quality and analyzes findings on the extent to which disparities can be attributed to factors other than race/ethnicity, such as insurance, socioeconomic status, and language

Does How Much and How You Pay Matter? Evidence from the Inpatient Rehabilitation Facility Prospective Payment System

We use the implementation of a new prospective payment system (PPS) for inpatient rehabilitation facilities (IRFs) to investigate the effect of changes in marginal and average reimbursement on costs. The results show that the IRF PPS led to a significant decline in costs and length of stay. Changes in marginal reimbursement associated with the move from a cost based system to a PPS led to a 7 to 11% reduction in costs. The elasticity of costs with respect average reimbursement ranged from 0.26 to 0.34. Finally, the IRF PPS had little or no impact on costs in other sites of care, mortality, or the rate of return to community residence.

Survival of Medicare Patients After Enrollment in Hospice Programs

Background: Each year more than 220,000 Medicare beneficiaries receive care from hospice programs designed to enhance the quality of the end of life. Enrollment requires certification by a physician that the patient has a life expectancy of less than six months. We examined how long before death patients enrolled in hospice programs. Methods: Using 1990 Medicare claims data, we analyzed the characteristics and survival of 6451 hospice patients followed for a minimum of 27 months with respect to mortality. Results: The patients' mean age was 76.4 years; 92.4 percent were white. Half the patients were women, and 80.2 percent had cancer of some type. The most common diagnoses were lung cancer (21.4 percent), colorectal cancer (10.5 percent), and prostate cancer (7.4 percent). The median survival after enrollment was only 36 days, and 15.6 percent of the patients died within 7 days. At the other extreme, 14.9 percent of the patients lived longer than six months. Survival varied substantially according to diagnosis, even after adjustment for age and coexisting conditions. The unadjusted survival after enrollment was shortest for those with renal failure, those with leukemia or lymphoma, and those with liver or biliary cancer; it was longest for those with chronic lung disease, those with dementia, and those with breast cancer. Patients at for-profit, larger, outpatient, or newer hospices lived longer after enrollment than those in other types of hospice programs. Conclusions: Most patients who enter hospice care do so late in the course of their terminal illnesses. The timing of enrollment in hospice programs varies substantially with the characteristics of the patients and the hospices.Sociolog

How Managed Care Growth Affects Where Physicians Locate Their Practices

Managed care has had a profound effect on physician practice. It has altered patterns in the use of physician services, and consequently, the practice and employment options available to physicians. But managed care growth has not been uniform across the United States, and has spawned wide geographic disparities in earning opportunities for generalists and specialists. This Issue Brief summarizes new information on how managed care has affected physicians’ labor market decisions and the impact of managed care on the number and distribution of physicians across the country

CHIP Expansions to Higher-Income Children in Three States: Profiles of Eligibility and Insurance Coverage

Summarizes findings on how changes in eligibility rules for children's public health insurance programs affected 2002-09 coverage rates and the number of uninsured children in Illinois, Pennsylvania, and Washington. Compares results by scope of reform

How Much is Post-Acute Care Use Affected by Its Availability?

To assess the relative impact of clinical factors versus non-clinical factors such as post acute care (PAC) supply - in determining whether patients receive care from skilled nursing facilities (SNFs) or inpatient rehabilitation facilities (IRFs) after discharge from acute care. Medicare acute hospital, IRF and SNF claims provided data on PAC choices; predictors of site of PAC chosen were generated from Medicare claims, provider of services, enrollment file, and Area Resource File data. We used multinomial logit models to predict post-acute care use by elderly patients after hospitalizations for stroke, hip fractures, or lower extremity joint replacements. A file was constructed linking Medicare acute and post-acute utilization data for all sample patients hospitalized in 1999. PAC availability is a more powerful predictor of PAC use than the clinical characteristics in many of our models. The effects of distance to providers and supply of providers are particularly clear in the choice between IRF and SNF care. The farther away the nearest IRF is, and the closer the nearest SNF is, the less likely a patient is to go to an IRF. Similarly, the fewer IRFs, and the more SNFs, there are in the patient's area the less likely the patient is to go to an IRF. In addition, if the hospital from which the patient is discharged has a related IRF or a related SNF the patient is more likely to go there. We find that the availability of PAC is a major determinant of whether patients use such care and which type of PAC facility they use. Further research is needed in order to evaluate whether these findings indicate that a greater supply of PAC leads to both higher use of institutional care and better outcomes or whether it leads to unwarranted expenditures of resources and delays in returning patients to their homes.

Socioeconomic Status and Medical Care Expenditures in Medicare Managed Care

This study examined the effects of education, income, and wealth on medical care expenditures in two Medicare managed care plans. The study also sought to elucidate the pathways through which socioeconomic status (SES) affects expenditures, including preferences for health and medical care and ability to navigate the managed care system. We modeled the effect of SES on medical care expenditures using Generalized Linear Models, estimating separate models for each component of medical expenditures: inpatient, outpatient, physician, and other expenditures. We found that education, income, and wealth all affected medical care expenditures, although the effects of these variables differed across expenditure categories. Moreover, the effects of these SES variables were much smaller than the effects found in earlier studies of fee-for-service Medicare. The pathway variables also were associated with expenditures. Accounting for the pathways through which SES affects expenditures narrowed the effect of SES on expenditures; however, the change in the estimates was very small. Thus, although our measures of preferences and ability to navigate the system were associated with expenditures, they did not account for an appreciable share of the impact of SES on expenditures.

Effects of Medicare Payment Reform: Evidence from the Home Health Interim and Prospective Payment Systems

Medicare continues to implement payment reforms that shift reimbursement from fee-for-service towards episode-based payment, affecting average and marginal reimbursement. We contrast the effects of two reforms for home health agencies. The Home Health Interim Payment System in 1997 lowered both types of reimbursement; our conceptual model predicts a decline in the likelihood of use and costs, both of which we find. The Home Health Prospective Payment System in 2000 raised average but lowered marginal reimbursement with theoretically ambiguous effects; we find a modest increase in use and costs. We find little substantive effect of either policy on readmissions or mortality

The relationship between urban sprawl and coronary heart disease in women

Studies have reported relationships between urban sprawl, physical activity, and obesity, but—to date—no studies have considered the relationship between sprawl and coronary heart disease (CHD) endpoints. In this analysis, we use longitudinal data on post-menopausal women from the Women’s Health Initiative (WHI) Clinical Trial to analyze the relationship between metropolitan statistical area (MSA)-level urban compactness (the opposite of sprawl) and CHD endpoints including death, any CHD event, and myocardial infarction. Models control for individual and neighborhood sociodemographic characteristics. Women who lived in more compact communities at baseline had a lower probability of experiencing a CHD event and CHD death or MI during the study follow-up period. One component of compactness, high residential density, had a particularly noteworthy effect on outcomes. Finally, exploratory analyses showed evidence that the effects of compactness were moderated by race and region

Effects of the relative fee structure on surgical utilization

The goal of this study is to develop a theoretical and empirical framework for investigating how the demand for an operation may be affected by the fee for the operation (the own-price), fees for other operations provided by surgeons in the same specialty (the cross-price), and fees for evaluation and management services (the visit-price). A behavioral model is developed assuming utility-maximizing surgeons who care about their income as well as the health benefits of the procedures that they perform on patients. Analysis of the model suggests an empirical test of whether surgeons create demand for surgery. The empirical work examines the use of eleven frequently performed surgical operations by elderly Medicare enrollees in a cross-section of 316 U.S. metropolitan areas. Medicare physician-claims and enrollment files for 1986 are the principal sources of data. Using econometric methods, a structural demand (i.e., utilization) equation modified to include the own-price, the cross-price, and the vist-price is estimated for each study operation. The theory suggests that the utilization response to changes in fees may differ among operations depending on whether demand creation occurs and on the interplay of distinct own-price, cross-price, and vist-price effects. However, the empirical results are inconclusive regarding the most appropriate economic model of surgical utilization. Both neoclassical behavior and demand creation are observed, but technical limitations of the analyses, including the cross-sectional design of the study, preclude definitive inferences. Nonetheless, the study has several implications for future research regarding the effect of changes in fees on surgical utilization. In particular, future studies should consider the roles of distinct own-price and cross-price effects, examine the importance of the supply-demand balance in physician-services markets, and assess whether typologies of operations based on the strictness of their clinical indications predict the appropriate economic model of utilization. The study also has implications for physician payment policy and for monitoring the impact of Medicare physician payment reform