| Literature DB >> 26472718 |
Abstract
This study examines the patterns of length of stay (LOS) and inpatient costs for both Medicaid managed care and nonmanaged care patients using data from Medicaid patients aged 18 to 64 years who were discharged from hospitals in Florida between 2006 and 2012. This study used pooled cross-sectional multilevel modeling. The results show that the type of Medicaid program in which patients were enrolled was significantly related to the hospital LOS and inpatient costs. Medicaid managed care patients had 7% shorter LOSs and a 1.9% lower inpatient cost than did Medicaid fee-for-service (FFS) patients. Medicaid managed care patients had shorter LOSs in the Medicaid managed care market with high competition. High managed care penetration generates a cost-decreasing spillover to Medicaid FFS patients.Entities:
Keywords: Medicaid managed care; competition; inpatient costs; length of stay
Mesh:
Year: 2015 PMID: 26472718 PMCID: PMC5813651 DOI: 10.1177/0046958015610762
Source DB: PubMed Journal: Inquiry ISSN: 0046-9580 Impact factor: 1.730
Descriptive Statistics.
| Level 1 variables (patient-related), length of stay: N = 684 267; cost: N = 1 368 146 | |||||
|---|---|---|---|---|---|
| Length of stay | Cost | ||||
| Variable | Description | Mean | SD | Mean | SD |
| LOS | Length of stay | 4.69 | 10.63 | 4.68 | 9.96 |
| LNCOST | Inpatient cost (log transformed) | — | — | 8.32 | 0.90 |
| MMC | Medicaid managed care | 0.25 | — | 0.25 | — |
| MALE | Male | 0.26 | — | 0.26 | — |
| BLACK | Black | 0.30 | — | 0.30 | — |
| AGE | Age | 37.07 | 13.95 | 37.10 | 13.96 |
| TOD | Number of secondary diagnosis | 4.58 | 4.75 | 4.58 | 4.75 |
| DRG_WGT | Diagnosis-related group weight | 1.08 | 1.31 | 1.08 | 1.31 |
| Level 2 variables (hospital-related), N = 902 | |||||
| Variable | Description | Mean | SD | ||
| HOSP_HHI | Hospital market concentration rates | 0.43 | 0.11 | ||
| FP_HOSP | For-profit hospital | 0.51 | — | ||
| NP_HOSP | Nonprofit hospital | 0.38 | — | ||
| GOV_HOSP | Public hospital | 0.11 | — | ||
| TEACHING | Teaching hospital | 0.25 | — | ||
| HOSP_BED | Number of hospital beds | 262.42 | 223.98 | ||
| OCC | Bed occupancy rates | 59.05 | 17.09 | ||
| WAGE | Wage index | 0.94 | 0.05 | ||
| MCAID_PC | Medicaid patient volume (%) | 7.39 | 8.02 | ||
| CMI | Hospital case-mix index | 1.46 | 0.24 | ||
| DIF_CMI | Difference in payer-specific case-mix index between commercial payer and Medicaid | 0.17 | 0.19 | ||
| MMC_PCT[ | Medicaid managed care penetration rates | 0.66 | 0.05 | ||
| MCO_HHI[ | Medicaid managed care market concentration rates | 0.41 | 0.30 | ||
| RURAL[ | Rural county | 0.03 | — | ||
| C_MCAID[ | Number of Medicaid recipients | 1620.60 | 426.28 | ||
| M_ADM[ | Number of Medicaid admissions | 217.57 | 984.39 | ||
County characteristics that were disaggregated to the hospital in a county.
Estimates for the Expected Log of Length of Stay in Hospital.
| Fixed effects | (1) Random slopes model | (2) Cross-level interaction model | ||||||
|---|---|---|---|---|---|---|---|---|
| Coefficient | Robust SE | IRR | Coefficient | Robust SE | IRR | |||
| INTERCEPT |
| 0.005 | <0.001 | 3.692 |
| 0.005 | <0.001 | 3.685 |
| HOSP_HHI |
| 0.077 | 0.004 | 1.252 |
| 0.077 | 0.002 | 1.264 |
| NP_HOSP[ | −0.010 | 0.011 | 0.396 | 0.991 | −0.003 | 0.011 | 0.818 | 0.997 |
| GOV_HOSP[ |
| 0.016 | 0.036 | 0.967 | −0.025 | 0.016 | 0.118 | 0.975 |
| TEACHING | 0.011 | 0.013 | 0.426 | 1.011 | 0.007 | 0.013 | 0.587 | 1.007 |
| HOSP_BED |
| 0.000 | <0.001 | 1.000 |
| 0.000 | <0.001 | 1.000 |
| OCC |
| 0.000 | <0.001 | 0.998 |
| 0.000 | <0.001 | 0.998 |
| WAGE |
| 0.111 | <0.001 | 3.558 |
| 0.109 | <0.001 | 3.531 |
| MCAID_PC | 0.000 | 0.001 | 0.570 | 1.000 | 0.000 | 0.001 | 0.560 | 1.000 |
| CMI |
| 0.031 | 0.004 | 1.096 |
| 0.031 | 0.005 | 1.090 |
| DIF_CMI |
| 0.038 | <0.001 | 0.863 |
| 0.037 | <0.001 | 0.862 |
| MMC_PCT | −0.147 | 0.124 | 0.237 | 0.864 | −0.169 | 0.116 | 0.145 | 0.844 |
| MCO_HHI | −0.015 | 0.024 | 0.518 | 0.985 | −0.016 | 0.022 | 0.481 | 0.985 |
| RURAL | −0.096 | 0.054 | 0.077 | 0.908 | −0.087 | 0.054 | 0.107 | 0.917 |
| C_MCAID |
| 0.000 | <0.001 | 1.000 |
| 0.000 | <0.001 | 1.000 |
| M_ADM | 0.000 | 0.000 | 0.076 | 1.000 |
| 0.000 | 0.031 | 1.000 |
| MMC slope |
| 0.006 | <0.001 | 0.927 |
| 0.009 | <0.001 | 0.945 |
| HOSP_HHI | 0.044 | 0.061 | 0.469 | 1.045 | ||||
| MMC_PCT |
| 0.170 | 0.005 | 0.618 | ||||
| MCO_HHI |
| 0.055 | 0.010 | 1.153 | ||||
| MALE slope |
| 0.006 | <0.001 | 1.108 |
| 0.006 | <0.001 | 1.108 |
| BLACK slope |
| 0.005 | <0.001 | 1.078 |
| 0.005 | <0.001 | 1.078 |
| AGE slope |
| 0.000 | 0.002 | 1.001 |
| 0.000 | 0.002 | 1.001 |
| TOD slope |
| 0.001 | <0.001 | 1.078 |
| 0.001 | <0.001 | 1.078 |
| DRG_WGT slope |
| 0.003 | <0.001 | 1.160 |
| 0.003 | <0.001 | 1.160 |
| Random effect | Variance component | χ2 | Variance component | χ2 | ||||
| INTERCEPT |
| 4851.6 | <0.001 |
| 5096.8 | <0.001 | ||
| MMC slope |
| 2355.8 | <0.001 |
| 2303.2 | <0.001 | ||
| MALE slope |
| 2373.0 | <0.001 |
| 2375.5 | <0.001 | ||
| BLACK slope |
| 1874.8 | <0.001 |
| 1875.8 | <0.001 | ||
| AGE slope |
| 3015.0 | <0.001 |
| 3014.8 | <0.001 | ||
| TOD slope |
| 9038.9 | <0.001 |
| 9009.3 | <0.001 | ||
| DRG_WGT slope |
| 26 660.3 | <0.001 |
| 26 661.4 | <0.001 | ||
| Level 1 effect | 1.268 | 1.271 | ||||||
Note. The results with time fixed effects are not reported; the variables at levels 1 and 2 are grand mean centering variables. IRR = incidence rate ratio.
Private for-profit hospital (FP_HOSP) was used as a reference group.
Figure 1.Predicted LOS by (a) Medicaid insurance status and MMC penetration rate and (b) Medicaid insurance status and HHI of Medicaid MCOs.
Note. LOS = length of stay; MMC = Medicaid managed care; HHI = Herfindahl-Hirschman Index; MCOs = managed care organizations; FFS = fee for service.
Estimates for the Log-Transformed Inpatient Cost.
| Fixed effects | (3) Random slopes model | (4) Cross-level interaction model | ||||
|---|---|---|---|---|---|---|
| Coefficient | Robust SE | Coefficient | Robust SE | |||
| INTERCEPT |
| 0.007 | <0.001 |
| 0.007 | <0.001 |
| HOSP_HHI |
| 0.072 | <0.001 |
| 0.071 | <0.001 |
| NP_HOSP[ |
| 0.014 | <0.001 |
| 0.014 | <0.001 |
| GOV_HOSP[ |
| 0.018 | <0.001 |
| 0.018 | <0.001 |
| TEACHING |
| 0.015 | 0.019 |
| 0.015 | 0.009 |
| HOSP_BED |
| 0.000 | <0.001 |
| 0.000 | <0.001 |
| OCC |
| 0.000 | 0.037 |
| 0.000 | 0.034 |
| WAGE |
| 0.131 | <0.001 |
| 0.131 | <0.001 |
| MCAID_PC |
| 0.001 | 0.001 |
| 0.001 | 0.002 |
| CMI |
| 0.038 | <0.001 |
| 0.038 | <0.001 |
| DIF_CMI |
| 0.034 | <0.001 |
| 0.034 | <0.001 |
| MMC_PCT | −0.195 | 0.138 | 0.158 | −0.232 | 0.134 | 0.083 |
| MCO_HHI | 0.017 | 0.027 | 0.541 | 0.015 | 0.027 | 0.567 |
| RURAL | −0.059 | 0.047 | 0.206 | −0.068 | 0.046 | 0.140 |
| C_MCAID |
| 0.000 | 0.022 |
| 0.000 | 0.020 |
| M_ADM |
| 0.000 | <0.001 |
| 0.000 | <0.001 |
| MMC slope |
| 0.004 | <0.001 |
| 0.005 | <0.001 |
| HOSP_HHI | −0.032 | 0.036 | 0.378 | |||
| MMC_PCT |
| 0.124 | <0.001 | |||
| MCO_HHI | −0.023 | 0.019 | 0.231 | |||
| MALE slope |
| 0.004 | <0.001 |
| 0.004 | <0.001 |
| BLACK slope | 0.003 | 0.003 | 0.178 | 0.003 | 0.003 | 0.194 |
| AGE slope |
| 0.000 | <0.001 |
| 0.000 | <0.001 |
| TOD slope |
| 0.001 | <0.001 |
| 0.001 | <0.001 |
| DRG_WGT slope |
| 0.004 | <0.001 |
| 0.004 | <0.001 |
| LOS slope |
| 0.001 | <0.001 |
| 0.001 | <0.001 |
| Random effect | Variance component | χ2 | Variance component | χ2 | ||
| INTERCEPT |
| 70 676.6 | <0.001 |
| 78 213.1 | <0.001 |
| MMC slope |
| 10 753.6 | <0.001 |
| 10 423.5 | <0.001 |
| MALE slope |
| 7609.2 | <0.001 |
| 7605.1 | <0.001 |
| BLACK slope |
| 2990.3 | <0.001 |
| 2991.2 | <0.001 |
| AGE slope |
| 10 598.8 | <0.001 |
| 10 601.5 | <0.001 |
| TOD slope |
| 22 504.2 | <0.001 |
| 22 494.4 | <0.001 |
| DRG_WGT slope |
| 31 638.2 | <0.001 |
| 31 653.2 | <0.001 |
| LOS slope |
| 532 164.6 | <0.001 |
| 532 577.1 | <0.001 |
| Level 1 effect | 0.312 | 0.312 | ||||
Note. The results with time fixed effects are not reported; the variables at levels 1 and 2 are grand mean centering variables.
Private for-profit hospital (FP_HOSP) was used as a reference group.
Figure 2.Predicted inpatient cost by Medicaid insurance status and MMC penetration rate.
Note. MMC = Medicaid managed care; MCO = managed care organization; FFS = fee for service.