Working Paper: NBER ID: w13301
Authors: joseph j doyle jr
Abstract: Health care spending varies widely across markets, yet there is little evidence that higher spending translates into better health outcomes, possibly due to endogeneity bias. The main innovation in this paper compares outcomes of patients who are exposed to different health care systems that were not designed for them: patients who are far from home when a health emergency strikes. The universe of emergencies in Florida from 1996-2003 is considered, and visitors who become ill in high-spending areas have significantly lower mortality rates compared to similar visitors in lower-spending areas. The results are robust across different types of patients and within groups of destinations that appear to be close demand substitutes.
Keywords: health care spending; mortality rates; emergency care; endogeneity bias
JEL Codes: I12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| local-area health care spending (H51) | inpatient mortality (I12) |
| local-area health care spending (end-of-life) (H51) | inpatient mortality (I12) |