How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study
This study aims to estimate the impact of a potential Medicaid expansion on Texas hospitals. The Affordable Care Act (ACA) Medicaid expansion increased access to health care and improved health outcomes. Still, several states, including Texas, have not adopted the expansion. This is a retrospective...
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Format: | Article |
Language: | English |
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SAGE Publishing
2022-09-01
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Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
Online Access: | https://doi.org/10.1177/00469580221121534 |
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author | Meryem Saygili PhD |
author_facet | Meryem Saygili PhD |
author_sort | Meryem Saygili PhD |
collection | DOAJ |
description | This study aims to estimate the impact of a potential Medicaid expansion on Texas hospitals. The Affordable Care Act (ACA) Medicaid expansion increased access to health care and improved health outcomes. Still, several states, including Texas, have not adopted the expansion. This is a retrospective quasi-experimental study. We obtained inpatient data containing discharges from Texas hospitals between 2010 and 2017 from the Texas Department of State Health Services. Texas hospitals receive a significant number of patients from the adjacent states. We use a difference-in-differences methodology, where the patients from the neighboring states that expanded Medicaid in 2014 are the treatment group, and those that reside in Texas are the control group. The outcome variables are the payer mix and the cost of treatment, proxied by Diagnoses Related Group (DRG) weights assigned by the Centers for Medicare and Medicaid Services (CMS). The Medicaid expansion is associated with 4.15% lower costs of treatment among the patients from the expansion states ( P < .01). Also, the uninsured rate decreased by 4.7 percentage points (from 11.3%, P < .01), while the share of Medicaid patients increased by 10.9 percentage points (from 30.7%, P < .01). There are no significant changes in the share of privately insured or Medicare patients. Texas hospitals can benefit significantly from Medicaid expansion due to reductions in average treatment costs and the share of the uninsured. |
first_indexed | 2024-04-14T01:50:21Z |
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id | doaj.art-0b2020dabe81468ba948cb102b5ad0c3 |
institution | Directory Open Access Journal |
issn | 0046-9580 1945-7243 |
language | English |
last_indexed | 2024-04-14T01:50:21Z |
publishDate | 2022-09-01 |
publisher | SAGE Publishing |
record_format | Article |
series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
spelling | doaj.art-0b2020dabe81468ba948cb102b5ad0c32022-12-22T02:19:23ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95801945-72432022-09-015910.1177/00469580221121534How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental StudyMeryem Saygili PhD0The University of Texas at Tyler, Tyler, TX, USAThis study aims to estimate the impact of a potential Medicaid expansion on Texas hospitals. The Affordable Care Act (ACA) Medicaid expansion increased access to health care and improved health outcomes. Still, several states, including Texas, have not adopted the expansion. This is a retrospective quasi-experimental study. We obtained inpatient data containing discharges from Texas hospitals between 2010 and 2017 from the Texas Department of State Health Services. Texas hospitals receive a significant number of patients from the adjacent states. We use a difference-in-differences methodology, where the patients from the neighboring states that expanded Medicaid in 2014 are the treatment group, and those that reside in Texas are the control group. The outcome variables are the payer mix and the cost of treatment, proxied by Diagnoses Related Group (DRG) weights assigned by the Centers for Medicare and Medicaid Services (CMS). The Medicaid expansion is associated with 4.15% lower costs of treatment among the patients from the expansion states ( P < .01). Also, the uninsured rate decreased by 4.7 percentage points (from 11.3%, P < .01), while the share of Medicaid patients increased by 10.9 percentage points (from 30.7%, P < .01). There are no significant changes in the share of privately insured or Medicare patients. Texas hospitals can benefit significantly from Medicaid expansion due to reductions in average treatment costs and the share of the uninsured.https://doi.org/10.1177/00469580221121534 |
spellingShingle | Meryem Saygili PhD How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study Inquiry: The Journal of Health Care Organization, Provision, and Financing |
title | How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study |
title_full | How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study |
title_fullStr | How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study |
title_full_unstemmed | How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study |
title_short | How Would Medicaid Expansion Affect Texas Hospitals? Evidence From a Retrospective Quasi-Experimental Study |
title_sort | how would medicaid expansion affect texas hospitals evidence from a retrospective quasi experimental study |
url | https://doi.org/10.1177/00469580221121534 |
work_keys_str_mv | AT meryemsaygiliphd howwouldmedicaidexpansionaffecttexashospitalsevidencefromaretrospectivequasiexperimentalstudy |