Vanderbilt’s Owen School faculty combines academic prestige with the real-world experience of top practitioners in a uniquely intimate and collaborative learning environment. From global finance and marketing to specialized areas such as health care and HR, Owen students learn from among the world’s best and in the process build relationships that last a lifetime.
Relative Prices, Payer Mix and Regional Variations in Medical Care
Monday, Mar 10, 2014 at 1:00PM | Room 206E
Abstract: The use of medical services and Medicare spending vary substantially across geographic regions of the United States, as documented by Dartmouth Atlas researchers over the past four decades. We measure the extent to which regional variations in Medicare spending on physician services is due to regional variations in the generosity of Medicare relative to private insurance prices. We take advantage of exogenous changes in Medicare reimbursement rates for physician services to estimate the relationship between Medicare reimbursement, private insurance prices for physician services, and Medicare utilization and spending. We find that a one-percent increase in Medicare reimbursement for a given service corresponds to a 0.46 increase in private prices for the same service and a 0.15 percent increase in the supply of that service to Medicare patients. These results are consistent with a model where physicians alter private prices in order to achieve an optimal mix of privately-insured and Medicare patients. The resulting difference in the payer mix of patients across regions creates cross-regional variation in Medicare spending. We predict that about one-sixth of the geographic variation in medical spending can be explained by variations in Medicare profit.
Models for Customer Share of Wallet
Tuesday, Mar 11, 2014 at 1:00PM | Room 216
Wednesday, Mar 12, 2014 at 1:00PM | Room 216
Fiscal Policy and the Distribution of Consumption Risk
University of North Carolina
Wednesday, Mar 12, 2014 at 10:30AM | Room 106
Coordinating Cross-Boundary Care Transitions
Ohio State University
Friday, Apr 25, 2014 at 12:00PM | Room TBD