Matching Items (10)
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- All Subjects: healthcare
- Creators: Department of Economics
- Member of: Barrett, The Honors College Thesis/Creative Project Collection
Description
Thesis Abstract: Cygnal The healthcare market plays a vital role in how our team worked with innovation space to design a product that fit user needs and could be a sustainable business. Whatever product we design is going to be dictated based off of how the insurance market will pay for it and how much we can charge for our product and services. In fact, the healthcare market is so incredibly unclear with outdated regulations that all of these fraud schemes and inflammatory prices are bound to happen. Stronger government involvement in this instance, I believe would help the issue. In reality, there are so many people taking advantage of the system that you cannot put the blame on anyone exploiting the system. What is clear though, is that they are taking advantage of a system that looks like it was set up to allow them to do so, and in that sense, Medicare is responsible for allowing this market to become warped. The healthcare industry played a vital role in our team for Innovation Space is completing our project. If we do not have a firm understanding on how the insurance market works, how much wheelchair companies are pricing chair components for, and how easily customers can see a financial benefit in switching to our product, it will not survive in the market place. That is why I as the business student am dedicating a lot of time in the final months of our project to make sure that our pricing is accurate, and feasible. The health insurance market, even if it is dysfunctional, will be ultimately paying for our product, and in business if you do not truly know your customer, you are bound to lose him. This paper uncovers why this market is warped and how to do business within it.
ContributorsMefford, Michael James (Author) / Peck, Sidnee (Thesis director) / Boradkar, Prasad (Committee member) / Barrett, The Honors College (Contributor) / Department of Economics (Contributor) / Department of Supply Chain Management (Contributor) / W. P. Carey School of Business (Contributor)
Created2015-05
Description
Objective: To assess and quantify the effect of state’s price transparency regulations (hereafter, PTR) on healthcare pricing.
Data Sources: I use the Healthcare Cost and Utilization Project’s Nationwide Inpatient Sample (NIS) from 2000 to 2011. The NIS is a 20% sample of all inpatient claims. The Manhattan Institute supplied data on the availability of health savings accounts in each state. State PTR implementation dates were gathered by Hans Christensen, Eric Floyd, and Mark Maffett of University of Chicago’s Booth School of Business by contacting the health department, hospital association, or website controller in each state.
Study Design: The NIS data was collapsed by procedure, hospital, and year providing averages for the dependent variable, Cost, and a host of covariates. Cost is a product of Total Charges within the NIS and the hospital’s Cost to Charge ratio. A new binary variable, PTR, was defined as ‘0’ if the year was strictly less than the disclosure website’s implementation date, ‘1’ for afterwards, and missing for the year of implementation. Then, using multivariate OLS regression with fixed effect modeling, the change in cost from before to after the year of implementation is estimated.
Principal Findings: The analysis estimates the effect of PTR to decrease the average cost per procedure by 7%. Specifications identify within state, within hospital, and within procedure variation, and reports that 78% of the cost decrease is due to within-hospital, within-procedure price discounts. An additional model includes the interaction of PTR with the prevalence of health savings accounts (hereafter, HSAs) and procedure electivity. The results show that PTR lowers costs by an additional 3 percent with each additional 10 percentage point increase in the availability of HSAs. In contrast, the cost reductions from PTR were much smaller for procedures more frequently coded as elective.
Conclusions: The study concludes price transparency regulations can lead to a decrease in a procedure’s costs on average, primarily through price discounts and slightly through lower cost procedures, but not due to patients moving to cheaper hospitals. This implies that hospitals are taking initiative and lowering prices as the competition’s prices become publically available suggesting that hospitals – not patients – are the biggest users of price transparency websites. Hospitals are also finding some ways to provide cheaper alternatives to more expensive procedures. State regulators should evaluate if a better metric other than charge prices, such as expected out-of-pocket payments, would evoke greater patient participation. Furthermore, states with higher prevalence of HSAs experience greater effects of PTR as expected since patients with HSAs have greater incentives to lower their costs. Patients should expect a shift towards plans that offer these types of savings accounts since they’ve shown to have a reduction of health costs on average per procedure in states with higher prevalence of HSAs.
Data Sources: I use the Healthcare Cost and Utilization Project’s Nationwide Inpatient Sample (NIS) from 2000 to 2011. The NIS is a 20% sample of all inpatient claims. The Manhattan Institute supplied data on the availability of health savings accounts in each state. State PTR implementation dates were gathered by Hans Christensen, Eric Floyd, and Mark Maffett of University of Chicago’s Booth School of Business by contacting the health department, hospital association, or website controller in each state.
Study Design: The NIS data was collapsed by procedure, hospital, and year providing averages for the dependent variable, Cost, and a host of covariates. Cost is a product of Total Charges within the NIS and the hospital’s Cost to Charge ratio. A new binary variable, PTR, was defined as ‘0’ if the year was strictly less than the disclosure website’s implementation date, ‘1’ for afterwards, and missing for the year of implementation. Then, using multivariate OLS regression with fixed effect modeling, the change in cost from before to after the year of implementation is estimated.
Principal Findings: The analysis estimates the effect of PTR to decrease the average cost per procedure by 7%. Specifications identify within state, within hospital, and within procedure variation, and reports that 78% of the cost decrease is due to within-hospital, within-procedure price discounts. An additional model includes the interaction of PTR with the prevalence of health savings accounts (hereafter, HSAs) and procedure electivity. The results show that PTR lowers costs by an additional 3 percent with each additional 10 percentage point increase in the availability of HSAs. In contrast, the cost reductions from PTR were much smaller for procedures more frequently coded as elective.
Conclusions: The study concludes price transparency regulations can lead to a decrease in a procedure’s costs on average, primarily through price discounts and slightly through lower cost procedures, but not due to patients moving to cheaper hospitals. This implies that hospitals are taking initiative and lowering prices as the competition’s prices become publically available suggesting that hospitals – not patients – are the biggest users of price transparency websites. Hospitals are also finding some ways to provide cheaper alternatives to more expensive procedures. State regulators should evaluate if a better metric other than charge prices, such as expected out-of-pocket payments, would evoke greater patient participation. Furthermore, states with higher prevalence of HSAs experience greater effects of PTR as expected since patients with HSAs have greater incentives to lower their costs. Patients should expect a shift towards plans that offer these types of savings accounts since they’ve shown to have a reduction of health costs on average per procedure in states with higher prevalence of HSAs.
ContributorsSabol, Joshua Lawrence (Author) / Reiser, Mark (Thesis director) / Ketcham, Jonathan (Committee member) / Dassanayake, Maduranga (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Department of Supply Chain Management (Contributor)
Created2015-05
Description
The purpose of this analysis is to determine the economic impact that the distribution of the SolarSPELL digital library system to Peace Corps volunteers in Vanuatu will have on the citizens of Vanuatu by quantifying the potential for SolarSPELL and its health education content to reduce rates of certain illnesses and thereby reduce the demands on the Vanuatu healthcare system. The research was carried out by researching the most prominent non-communicable diseases in Vanuatu that could be affected by lifestyle changes as a result of exposure to the health education content on the SolarSPELL and determining the expected changes in rates of each non-communicable disease as well as the expected changes in the individual and hospital costs, the loss of income due to missed work, transport costs within Vanuatu, and international medical evacuation costs. Ultimately, these costs were collectively reduced by approximately 2.046% due to SolarSPELL intervention, a reduction of approximately $7,000. However, given the limited scope of available information within the healthcare system of Vanuatu, it can be inferred that the impact of the distribution of the SolarSPELL is likely significantly larger. Consequently, it is recommended that the Vanuatu Ministry of Health, the SolarSPELL team, and the Peace Corps implement policies to increase the volume of healthcare data collected in Vanuatu in order to assist in future analyses of the healthcare system.
ContributorsErspamer, Brett Thomas (Author) / Ross, Heather (Thesis director) / Silverman, Daniel (Committee member) / Dean, W.P. Carey School of Business (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2019-05
Description
The primary purpose of this paper is to analyze urgent care centers and explain their role within the U.S. healthcare system. The introduction of urgent care into the market for health care services has brought with it a new way for consumers to receive non-emergent healthcare outside of traditional hours. Urgent care is often cited as a plausible alternative to care received at an emergency department or primary care physician's office. One of the key questions the author attempts to answer is: "To what degree are urgent care centers an economic substitute to emergency departments or physician's offices?" This paper looks at both projected demand from currently operating urgent care centers and consumer preference surveys to estimate the willingness of consumers to use urgent care. The method used to accomplish this task has been compiling scholarly research and data on urgent care centers. After a thorough examination of relevant studies and datasets, urgent care centers have been found to be just as preferred as emergency departments when considering non-emergent cases, specifically among individuals aged 18-44. The clear majority of consumers still prefer visiting a primary care physician over an urgent care center when it comes to episodic care, however. When taking into account wait times, differences in cost, and ease of access, urgent care becomes much more preferred than an emergency department and weakly preferred to a physician's office. There are still some concerns with urgent care, however. Questions of capacity to meet demand, access for underserved communities, and susceptibility to adverse selection have yet to be fully explored.
ContributorsBullington, Robert Heyburn (Author) / Foster, William (Thesis director) / Hill, John (Committee member) / Sandra Day O'Connor College of Law (Contributor) / W.P. Carey School of Business (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2018-05
Description
The purpose of this research was to identify various problems within value analysis teams as well as provide solutions that will help to better align the agents involved in the value analysis process. As healthcare costs continue to rise, and hospital reimbursements fall, value analysis teams will play an even more pivotal role in the success of healthcare organizations. Also, the industry trend toward value-based care is highlighting the importance of these teams. However, interdisciplinary value analysis teams bring to light the underlying agency issue that exists between physicians and hospital administrators, and the general misalignment of values between the participants. In order for these teams to function properly, it is inherent that all of the professionals involved align their incentives. For this study, I studied relevant literature pertaining to value analysis, attended relevant speakers, and then performed interviews with several different professionals involved in healthcare value analysis. I organized and coded this data using the Grounded Theory approach, and was able to identify the underlying issues within these teams. I then created a typology of value analysis teams, based on my respondents, where I segment them into four tiers based on their utilization of data, and their level of physician involvement. Finally, I identified three distinct strategies for developing value analysis teams to implement in order to increase their efficiency and overall success.
ContributorsLindgren, Thomas John (Author) / Schneller, Eugene (Thesis director) / Choi, Thomas (Committee member) / Department of Supply Chain Management (Contributor) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2017-05
Description
The United States spends far more on healthcare than other developed countries, and it is increasing at a rapid pace that places intense financial pressure on the American public. The high levels of spending are not attributable to increased quality of care or a healthier general population. Rather, the culprits are a combination of uniquely American social and cultural factors that increase the prevalence of chronic illness coupled with a large and complex healthcare industry that has a multitude of stakeholders, each with their own motivations and expense margins that inflate prices. Additionally, rampant lack of transparency, overutilization and low-quality care contribute to unnecessarily frequent and expensive payments. Public and private institutions have implemented legislation and programs that provide temporary relief, but powerful lobbying efforts by healthcare-related organizations and a general American aversion to high government involvement have prevented the United States from creating effective, long-lasting reform.
ContributorsPetit, Lea (Author) / Milovanovic, Jelena (Thesis director) / Zicarelli, John (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor)
Created2022-05
Description
Substance use disorders account for billions of dollars annually in emergency and inpatient healthcare, not taking into account the healthcare costs of the disorders with which substance use disorders are associated with increased risks of developing. However, while treatment for these disorders shows a decreasing action on health costs, a low percentage of affected individuals receive treatment, despite many insurance payers providing coverage for treatments of this nature. Thus, this maintains the issues under the current healthcare system of mitigatable, generally higher, healthcare costs and increased health risks for individuals with substance use disorders.
ContributorsWelsh, Isabelle (Author) / Zhou, Hongjuan (Thesis director) / Milovanovic, Jelena (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor)
Created2022-05
Description
Many would contend that the United States healthcare system should be moving towards a state of health equity. Here, every individual is not disadvantaged from achieving their true health potential. However, a variety of barriers currently exist that restrict individuals across the country from attaining equitable health outcomes; one of these is the social determinants of health (SDOH). The SDOH are non-medical factors that influence the health outcomes of an individual such as air pollution, food insecurity, and transportation accessibility. Each of these factors can influence the critical illnesses and health outcomes of individuals and, in turn, diminish the level of health equity in affected areas. Further, the SDOH have a strong correlation with lower levels of health outcomes such as life expectancy, physical health, and mental health. Despite having influenced the United States health care system for decades, the industry has only begun to address its influences within the past few years. Through exploration between the associations of the SDOH and health outcomes, programming and policy-making can begin to address the barrier to health equity that the SDOH create.
ContributorsWaldman, Lainey (Author) / Zhou, Hongjuan (Thesis director) / Zicarelli, John (Committee member) / Barrett, The Honors College (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Economics Program in CLAS (Contributor)
Created2023-05
Description
The purpose of this thesis was to estimate the potential health care cost savings from legalizing a physician assisted suicide (PAS) policy on both a national and individual scale. Given the evolving legal context of PAS paired with the rapidly rising health care costs and aging population in the United States, we hypothesized that implementing a PAS policy on a federal scale would significantly lower healthcare costs. We conducted our analysis using 2 methods: one based on data from the Netherlands and one based on data from Oregon. Overall, we found that while cost savings on a national level are not significant enough to solely justify legalization of PAS, there is a compelling case that legalization of PAS would be a compassionate policy that significantly relieves the financial burden on individuals and their families.
ContributorsJenkins, Kylie (Co-author) / Cunningham, Chloe (Co-author) / Mendez, Jose (Thesis director) / Oberlin, Stephen (Committee member) / Department of Economics (Contributor) / Barrett, The Honors College (Contributor)
Created2015-12
Description
This world promises just one thing: continuous change. As humanity has moved through time much has changed in the worlds of science, mathematics, and physics. These shifts in humanity's comprehension often arrive unexpectedly, driven by education, innovation, and experimentation. Such transformative waves resemble a series of technology shocks that are known to cause significant disruptions within an industry and the economy broadly as firms permanently change the ways they produce and distribute goods and services in response to new technologies or information. The recent flurry of innovation and interest in Artificial Intelligence leads us to believe that many industries may be experiencing such a wave of change today. The healthcare industry currently employs the most workers of any other sector in the United States (outside of the government) and is made up of an unprecedented 77% of female workers making the outcomes of changes in its labor market demands particularly important. In this paper we discuss the current state of Artificial Intelligence adoption within the clinical side of healthcare, what sub sectors and occupations are most exposed, and to what extent the FDA approved AI-enabled clinical healthcare products replace or complement those tasks of existing occupations. We also interviewed a few healthcare professionals with different levels of seniority and exposure to AI-enabled products to develop a holistic understanding of current AI adoption, employee preparation, and potential labor market implications over the short and long term. We find that AI implementation within clinical healthcare settings is young in its life cycle yet fast growing. Current use cases are mostly in the earlier stages of the patient’s care journey assisting workers in various capacities in the processes of patient testing, diagnosis, care planning, and post-treatment monitoring. The tasks associated with patient interaction and care administration do not appear to be threatened by AI automation at this point in time. Additionally, approved Artificial Intelligence products for clinical use are disproportionately concentrated in the subsectors of radiology, neurology, and cardiology. Finally, our interviews revealed a concerning lack of consideration and preparation, among healthcare workers, for the potential automation of their fundamental tasks. Going forward, we believe it wise for healthcare workers to monitor the evolution of clinical AI use cases as well as the FDA approval of AI-enabled products and prepare for potential automation by continuing to learn new skills, take on additional responsibilities, and generally inject themselves into as many stages of the patient’s healthcare journey as possible to differentiate among other workers and avoid the coming wave of mass clinical automation.
ContributorsDolasinski, Nicholas (Author) / McElenney, Nicholas (Co-author) / Mehta, Ari (Thesis director) / Asheim, Brody (Committee member) / Barrett, The Honors College (Contributor) / Department of Finance (Contributor) / Department of Economics (Contributor)
Created2024-05