Wu created two tool having alterations in Medicare funds: good “BBA bite” (similar to Cutler’s “Medicare bite”) and you will a good 1996 proportion out of Medicare so you can low-Medicare discharges. 7 The fresh built changeable is the alteration regarding the for each and every-diligent low-Medicare rates, once more just like Cutler’s. Two types of designs were utilized, one to having instrumented Medicare rate alter given that trick separate variable additionally the almost every other which have instrumented Medicare revenue transform as the key independent adjustable. Almost every other separate parameters provided a negotiating-fuel level (new display from personal pay discharges less you to to possess Medicare customers), 8 health control sorts of, height and alter from inside the HMO sector penetration (together with instrumented), improvement in instance merge, healthcare occupancy speed, top and change inside Medicaid-to-Medicare physicians’ percentage ratio, express away from for-finances hospitals, and you can healthcare industry amount.
Wu estimated several OLS activities with hospital fixed consequences. In a few models, an important independent Medicare rate otherwise funds change parameters was basically interacted towards bargaining-stamina varying (to test the business energy in the place of the techniques theory). In other activities, this new Medicare revenue changes including was interacted toward hospital’s attributes (profit standing, teaching hospital indication, social hospital signal, HMO business penetration level and alter, and you can top and change equal in porportion off discharges in the market depicted of the getting-finances medical facilities). (suite…)