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State-Level Variations in Hospital Expenditures: An Application of Spatial Regression

The Journal of Health Care Finance

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Title State-Level Variations in Hospital Expenditures: An Application of Spatial Regression
 
Creator Bose, Srimoyee; PhD in Natural Resource Economics, West Virginia University currently enrolled in PhD in Public Health, Georgia State University
Gebremedhin, Tesfa G.; Professor, West Virginia University, Natural Resource Economics, Davis College of Agriculture, Natural Resources & Design
Sambamoorthi, Usha; Professor, West Virginia University, School of Pharmacy, Department of Pharmaceutical Systems and Policy
 
Description Hospitalizations have resurfaced as one of the primary concern for the United States healthcare system and the health planners due to their increasing share of total medical expenses, illness and mortality problems. Approximately, 30-38% of the total healthcare costs is due to hospitalizations. While there are many reasons for hospitalization, an estimated 25% to 40% of all admissions are for treating alcohol-related complications. Furthermore, it is plausible that the hospital spending in one state can affect the hospital expenditures of the neighboring states. This is because 1) hospital prices, practices and policies of the adjacent states influence the hospital expenditures of one state, and 2) presence of hospital facilities in a Hospital Referral Region (HRR) which serve patients across state lines. Therefore, using a Spatial Durbin Fixed Effect Model, this paper examines the state-level variations in hospital expenditures. This research used panel data from 2000 through 2009, extracted from publicly available data files. Results highlighted that rate of binge drinking, the total number of hospital beds and hospitals per 1,000 residents, the unemployment rate, the percentage of African-Americans, proportion of active physicians and state gross domestic product (GDP) had positive impacts on its neighboring states’ rates of hospital expenses. Moreover, the increasing rate of male population, Hispanic population and the rate of un-insurance of a state had adverse impacts on its own rate of hospital costs but positive effects on its bordering states’ rate of hospital spending. 
 
Publisher Worldwebtalk.com, Inc.
 
Contributor —
 
Date 2015-12-09
 
Type info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
Peer-reviewed Article
 
Format application/pdf
 
Identifier http://healthfinancejournal.com/index.php/johcf/article/view/45
 
Source Journal of Health Care Finance; Vol 42, No 2: Fall 2015
 
Language eng
 
Relation http://healthfinancejournal.com/index.php/johcf/article/view/45/47
 
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