Revisiting Rogowski and Newhouse on the indirect costs of teaching: a note on functional form and retransformation in Medicare's payment formulas |
| |
Authors: | Dalton K Norton E C |
| |
Institution: | Cecil G. Sheps Center for Health Services Research, Chapel Hill, NC 27599-7590, USA. kathleen_dalton@unc.edu |
| |
Abstract: | In 1992 Rogowski and Newhouse identified errors in functional form and retransformation in the econometric model that underlies Medicare's payments to teaching hospitals. We re-estimate their model and expand on their work, with data from the following decade. We find: (1) the functional form imposed by Health Care Financing Administration's original specification of the teaching variable is supported by the data; (2) there is no evidence of a threshold effect when the teaching intensity variable is appropriately specified; (3) there is no longer evidence of heteroscedasticity across teaching hospital types, consequently there is no need to incorporate re-transformation factors into the payment formula. We attribute the differences in our findings to secular changes in the hospital industry and improvements in variable measurement. |
| |
Keywords: | Hospital costs Teaching hospitals Prospective payment system (PPS) Retransformation |
本文献已被 ScienceDirect PubMed 等数据库收录! |