Measuring Hospital Quality – Healthcare Economist

by akoloy

Quality of care is tough to measure. Even in the event you had an ideal measure of high quality when it comes to well being outcomes, threat adjustment is imperfect. For occasion, educational medical facilities are sometimes assumed to have top quality, however precise outcomes noticed within the information is probably not that good if in addition they obtain the sickest, most severely sick sufferers. If some measures of sickness severity will not be observable, the standard of those facilities could also be underestimated.

A paper by Gewenke et al. (2003) addresses this choice bias concern utilizing Bayesian method. The paper makes use of information on hospital admissions for pneumonia in Los Angeles and measures hospital high quality by whether or not the affected person died inside 10-days of the hospital admission. Hospital alternative is modeled utilizing multinomial probit mannequin, the place distance from the hospital is used to foretell hospital alternative. Mortality is modelled as a binary probit mannequin which will depend on hospital alternative, particular person traits and unobserved severity included within the error time period of the multinomial probit specification. The authors use a Bayesian method, leveraging a hierarchical priors to tell a Markov chain Monte Carlo (MCMC) simulation. The hierarchical priors assume that hospital high quality is comparable ex-ante (i.e., earlier than going to the information). A Gibbs sampling algorithm is used to estimate all parameters and latent variables.

Using this method, the authors discover that:

…the smallest and largest hospitals to be of the very best high quality. There is powerful proof of dependence between the unobserved severity of sickness and the task of sufferers to hospitals, whereby sufferers with a excessive unobserved severity of sickness are disproportionately admitted to top quality hospitals. Consequently a standard probit mannequin results in inferences about high quality which are markedly totally different from these on this research’s choice mannequin.

Do learn the entire paper here.


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