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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American Economic Association
2014
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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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format | Article |
id | mit-1721.1/87608 |
institution | Massachusetts Institute of Technology |
language | en_US |
last_indexed | 2024-09-23T09:54:26Z |
publishDate | 2014 |
publisher | American Economic Association |
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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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