TY - JOUR
T1 - Payer type and the returns to bypass surgery
T2 - Evidence from hospital entry behavior
AU - Chernew, Michael
AU - Gowrisankaran, Gautam
AU - Fendrick, A. Mark
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2002
Y1 - 2002
N2 - In this paper, we estimate the returns associated with the provision of coronary artery bypass graft (CABG) surgery, by payer type (Medicare, HMO, etc.). Because reliable measures of prices and treatment costs are often unobserved, we seek to infer returns from hospital entry behavior. We estimate a model of patient flows for CABG patients that provides inputs for an entry model. We find that FFS provides a high return throughout the study period. Medicare, which had been generous in the early 1980s, now provides a return that is close to zero. Medicaid appears to reimburse less than average variable costs. HMOs essentially pay at average variable costs, though the return varies inversely with competition.
AB - In this paper, we estimate the returns associated with the provision of coronary artery bypass graft (CABG) surgery, by payer type (Medicare, HMO, etc.). Because reliable measures of prices and treatment costs are often unobserved, we seek to infer returns from hospital entry behavior. We estimate a model of patient flows for CABG patients that provides inputs for an entry model. We find that FFS provides a high return throughout the study period. Medicare, which had been generous in the early 1980s, now provides a return that is close to zero. Medicaid appears to reimburse less than average variable costs. HMOs essentially pay at average variable costs, though the return varies inversely with competition.
KW - Entry models
KW - Hospital margins
KW - Managed care
UR - http://www.scopus.com/inward/record.url?scp=0036214006&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=0036214006&partnerID=8YFLogxK
U2 - 10.1016/S0167-6296(01)00139-4
DO - 10.1016/S0167-6296(01)00139-4
M3 - Article
C2 - 12022268
AN - SCOPUS:0036214006
VL - 21
SP - 451
EP - 474
JO - Journal of Health Economics
JF - Journal of Health Economics
SN - 0167-6296
IS - 3
ER -