Estimating the indirect costs of teaching

Jeannette A. Rogowski, Joseph P. Newhouse

Research output: Contribution to journalArticlepeer-review

32 Scopus citations

Abstract

Medicare's Prospective Payment System pays teaching hospitals using a regression coefficient in a log-log cost function. Previous literature showed that this coefficient is sensitive to the covariates included in the function, but specified teaching intensity as the logarithm of one plus the intern and resident-to-bed ratio. Provided the true relationship is log-log, adding one biases the coefficient substantially but not predicted cost. In a re-specified equation that makes this bias negligible, the coefficient is not nearly as sensitive to the inclusion of other covariates. Because further issues remain to be explored, it is premature to use our results for policy purposes.

Original languageEnglish (US)
Pages (from-to)153-171
Number of pages19
JournalJournal of Health Economics
Volume11
Issue number2
DOIs
StatePublished - Aug 1992

All Science Journal Classification (ASJC) codes

  • Health Policy
  • Public Health, Environmental and Occupational Health

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