Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009

Although US health care expenditures reached 17.6 percent of GDP in 2009, quality measurement in this important service sector remains limited. Studying quality changes associated with 11 years of health care for patients with diabetes, we find that the value of reduced mortality and avoided treatme...

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Main Authors: Eggleston, Karen N, Shah, Nilay D, Smith, Steven A, Berndt, Ernst R., Newhouse, Joseph P.
Other Authors: Sloan School of Management
Format: Article
Language:en_US
Published: American Economic Association 2014
Online Access:http://hdl.handle.net/1721.1/87608
https://orcid.org/0000-0002-6388-0768
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author Eggleston, Karen N
Shah, Nilay D
Smith, Steven A
Berndt, Ernst R.
Newhouse, Joseph P.
author2 Sloan School of Management
author_facet Sloan School of Management
Eggleston, Karen N
Shah, Nilay D
Smith, Steven A
Berndt, Ernst R.
Newhouse, Joseph P.
author_sort Eggleston, Karen N
collection MIT
description Although US health care expenditures reached 17.6 percent of GDP in 2009, quality measurement in this important service sector remains limited. Studying quality changes associated with 11 years of health care for patients with diabetes, we find that the value of reduced mortality and avoided treatment spending, net of the increase in annual spending, was $9,094 for the average patient. These results suggest that the unit cost of diabetes treatment, adjusting for the value of health outcomes, has been roughly constant. Since input prices have not been declining, our results are consistent with productivity improvement in health care.
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spelling mit-1721.1/876082022-09-26T14:28:51Z Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009 Eggleston, Karen N Shah, Nilay D Smith, Steven A Berndt, Ernst R. Newhouse, Joseph P. Sloan School of Management Berndt, Ernst R. Although US health care expenditures reached 17.6 percent of GDP in 2009, quality measurement in this important service sector remains limited. Studying quality changes associated with 11 years of health care for patients with diabetes, we find that the value of reduced mortality and avoided treatment spending, net of the increase in annual spending, was $9,094 for the average patient. These results suggest that the unit cost of diabetes treatment, adjusting for the value of health outcomes, has been roughly constant. Since input prices have not been declining, our results are consistent with productivity improvement in health care. 2014-06-02T17:39:00Z 2014-06-02T17:39:00Z 2011-05 Article http://purl.org/eprint/type/JournalArticle 0002-8282 http://hdl.handle.net/1721.1/87608 Eggleston, Karen N, Nilay D Shah, Steven A Smith, Ernst R Berndt, and Joseph P Newhouse. “Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009.” American Economic Review 101, no. 3 (May 2011): 206–211. https://orcid.org/0000-0002-6388-0768 en_US http://dx.doi.org/10.1257/aer.101.3.206 American Economic Review Article is made available in accordance with the publisher's policy and may be subject to US copyright law. Please refer to the publisher's site for terms of use. application/pdf American Economic Association American Economic Association
spellingShingle Eggleston, Karen N
Shah, Nilay D
Smith, Steven A
Berndt, Ernst R.
Newhouse, Joseph P.
Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title_full Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title_fullStr Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title_full_unstemmed Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title_short Quality Adjustment for Health Care Spending on Chronic Disease: Evidence from Diabetes Treatment, 1999–2009
title_sort quality adjustment for health care spending on chronic disease evidence from diabetes treatment 1999 2009
url http://hdl.handle.net/1721.1/87608
https://orcid.org/0000-0002-6388-0768
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