Evaluating measures of hospital quality: Evidence from ambulance referral patterns

Hospital quality measures are crucial to a key idea behind health care payment reforms: “paying for quality” instead of quantity. Nevertheless, such measures face major criticisms largely over the potential failure of risk adjustment to overcome endogeneity concerns when ranking hospitals. In this p...

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Bibliographic Details
Main Authors: Doyle, J. (Author), Graves, J. (Author), Gruber, J. (Author)
Format: Article
Language:English
Published: MIT Press Journals 2019
Online Access:View Fulltext in Publisher
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245 1 0 |a Evaluating measures of hospital quality: Evidence from ambulance referral patterns 
260 0 |b MIT Press Journals  |c 2019 
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520 3 |a Hospital quality measures are crucial to a key idea behind health care payment reforms: “paying for quality” instead of quantity. Nevertheless, such measures face major criticisms largely over the potential failure of risk adjustment to overcome endogeneity concerns when ranking hospitals. In this paper, we test whether patients treated at hospitals that score higher on commonly used quality measures have better health outcomes in terms of rehospitalization and mortality. To compare similar patients across hospitals in the same market, we exploit ambulance company preferences as an instrument for hospital choice. We find that a variety of measures that insurers use to measure provider quality are successful: choosing a high-quality hospital compared to a low-quality hospital results in 10% to 15% better outcomes. © 2018 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology. 
700 1 |a Doyle, J.  |e author 
700 1 |a Graves, J.  |e author 
700 1 |a Gruber, J.  |e author 
773 |t Review of Economics and Statistics