Estimating Heterogeneity in the Benefits of Medical Treatment Intensity

Working Paper: NBER ID: w15309

Authors: William N. Evans; Craig L. Garthwaite

Abstract: Federal and state laws passed in the late 1990 increased considerably postpartum stays for newborns. Using all births in California over the 1995-2001 period, 2SLS estimates suggest that for the average newborn impacted by the law, increased treatment intensity had modest and statistically insignificant (p-value>0.05) impacts on readmission probabilities. Allowing the treatment effect to vary by pre-existing conditions or the pre-law propensity score of being discharged early, two objective measures of medical need, demonstrates that the law had large and statistically significant impacts for those with the greatest likelihood of a readmission. These results demonstrate heterogeneity in the returns to greater treatment intensity, and the returns to the average and marginal patient vary considerably.

Keywords: No keywords provided

JEL Codes: I10; I12; I18


Causal Claims Network Graph

Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.


Causal Claims

CauseEffect
Complications during delivery (J89)Increased postpartum hospital stays (I11)
Increased postpartum hospital stays (I11)Newborn readmission rates (J13)
Increased postpartum hospital stays (I11)Newborn readmission rates for newborns with higher medical needs (I11)
Increased postpartum hospital stays (I11)Health outcomes for newborns with complications (I14)
Increased postpartum hospital stays (I11)Health outcomes for newborns without complications (I14)

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