Minitab Statistical Analysis Project

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Example3DenmarkHealthCare.ppt

What Affects Health Care Costs in Denmark ?

Cecilie Nygaard - Pedersen

Statistics Project

STAT 4610

Why look at Health Care Costs?

  • Health Care Costs are currently a hot topic in Danish politics because as the baby boomer generation is reaching retirement there is currently not enough young people to help pay the bill. The Danes are not having enough children. People are afraid that we will not be able to sustain our current welfare system.
  • Currently there is also ambivalence towards strengthening health preventive measures. Therefore I am interested to see if there is a relationship between Total Health Care Cost and Health Prevention Cost.
  • Most of my family is part of the Health Care System and therefore doing this product, will help me better understand the issues they are facing.

Where is Denmark?

This is where I live

Humlebæk, Denmark

Facts about Denmark

  • The Capital: Copenhagen
  • Other Major Cities: Aarhus, Odense & Aalborg
  • Area: 42,915.7 Km2
  • Population as of January 1st 2014: 5,627,235
  • National Language: Danish
  • Currency: Danish Kroner
  • Exchange Rate: 1 dollar = 5,98 kr.
  • GDP: $330.8 billion

Health Care in Denmark

Denmark is a Welfare State

Health Care is largely financed through local (regional & municipal) taxation

Denmark spends 11.2% of its GDP on Healthcare

Life Expectancy: Women 81.9 years ; Men 78.0 years

There is 1 doctor for every 294 people in Denmark

Total Health Care Cost in 2013: 14,199,570,000 DKK or $2,372,367,761.50

There is no copay when going to the doctor or hospital

Comparison to Other Countries

Chart1

Denmark
USA
Germany
Norway
Sweden
Netherlands
Health Care Cost per Capita 2013
4467
8745
4342
5391
3760
5112

Sheet1

Health Care Cost per Capita 2013
Denmark $4,467
USA $8,745
Germany $4,342
Norway $5,391
Sweden $3,760
Netherlands $5,112
To update the chart, enter data into this table. The data is automatically saved in the chart.

Total Health Care Cost in Denmark 2006-2013

The Total Health Care Cost increased by 3,233,421,000 DKK or $540,218,030.54 from 2006 – 2013

Project Parameters

Q1: Is there a difference in Health Care Cost among Men and Women?

The dotplot indicates that there is a difference in Health Care Cost among Men and Women. A larger portion of the Health Care Costs from 2006 -2013 are spent on Women than Men

Q1: Is there a difference in Health Care Cost among Men and Women? Continued

Two Sample T - Test – Results & Summary

Gender N Mean StDev SE Mean

Female 8 7697861 754532 266767

Male 8 5315361 542905 191946

Difference = μ (Female) - μ (Male)

Estimate for difference:  2382500

95% CI for difference:  (1666442, 3098557)

T-Test of difference = 0 (vs ≠): T-Value = 7.25

DF = 12  

P-Value = 0.000

 

Based on the p – value of 0.000, and that the confidence interval does not contain 0, there is strong evidence to show that there is a statically significant difference in Health Care Cost among Men and Women. Based on the mean, women generate more Health Care Cost than men.

Q2: Are the Health Care Cost based on ages?

Hypothesis:

H0 = There is no difference in Health Care Cost between the age groups ( They are all the same)

Ha = There is some difference in the Health Care Cost between the age groups (They are not all the same)

Q2: Are the Health Care Cost based on ages? Continued

The Interval Plot indicates that there is some difference in Health Care Costs among different age groups. The 60-69 age group generate more Health Care Costs than any other age group.

Q2: Are the Health Care Cost based on ages? Continued

One- Way ANOVA Test- Results

Factor = Age Levels =  10

Values =  0-9 years, 10-19 years, 20-29 years, 30-39 years, 40-49 years, 50-59 years, 60-69 years, 70-79 years, 80-89 years, 90 years +

Analysis of Variance

 

Source  DF    Adj SS        Adj MS   F-Value   P-Value

Age       9   2.53392E+13   2.81546E+12    112.62     0.000

Error    70   1.74995E+12   24999295594

Total    79   2.70891E+13

Model Summary

S     R-sq  R-sq(adj)  R-sq(pred)

158112  93.54%      92.71%       91.56%

 

 

Q2: Are the Health Care Cost based on ages? Continued

One –Way ANOVA Test- Results

Means

 

Age           N     Mean    StDev     95% CI

0-9 years     8   1002206   46666   (890716, 1113697)

10-19 years   8     757620   69210   (646129,  869111)

20-29 years  8   1182382  142544   (1070891, 1293872)

30-39 years  8   1536322    85911 (1424831, 1647813)

40-49 years  8   1759012   140248   (1647521, 1870503)

50-59 years  8   1866936 136991   (1755445, 1978426)

60-69 years  8   2138846  290293   (2027356, 2250337)

70-79 years   8   1640526  279147   (1529035, 1752017)

80-89 years  8    938179   116251   (826688, 1049670)

90 years +    8    189943    34386   (78452,  301434)

Pooled StDev = 158112

Q2: Are the Health Care Cost based on ages? Continued

One-Way ANOVA Test- Results

The Tukey Pairwise Comparisons:

 

 

Q2: Are the Health Care Cost based on ages? Continued

One-Way ANOVA Test- Results

The Tukey Pairwise Comparisons:

Age           N     Mean  Grouping

60-69 years  8   2138846  A

50-59 years  8   1866936    B

40-49 years  8   1759012    B C

70-79 years  8   1640526    B C

30-39 years  8   1536322      C

20-29 years  8   1182382        D

0-9 years      8   1002206        D E

80-89 years  8    938179         D E

10-19 years   8    757620           E

90 years +    8    189943            F

 

Q2: Are the Health Care Cost based on ages? Continued

One-Way ANOVA Test- Results Summary

Step 1: Analysis of Variance

  • A one-way ANOVA test was conducted to determine if Health Care Costs was different for groups with different ages.
  • Based on the p-value of 0.000, which is lower than 10%, there is sufficient evidence to establish the alternative hypothesis and the null hypothesis can therefore be rejected.

Step 2: Tukey Pairwise Comparisons

  • The means that do not share a letter are significantly different

Q3: Are the expenses based on
Regions?

Hypothesis:

H0 = There is no difference in Health Care Cost between the Regions ( They are all the same)

Ha = There is some difference in the Health Care Cost between the Regions (They are not all the same)

For this test I adjusted the Health Care from total to per capita, since each region in Denmark has very different population numbers, which would skew my results.

Q3: Are the expenses based on
Regions? Continued

The Interval Plot indicates that there is some difference in Health Care Costs among different Regions. The Region Hovedstaden generates more Health Care Cost per capita than any other region.

Q3: Are the expenses based on
Regions? Continued

One – Way ANOVA Test – Results

Factor = Region Levels = 5

Values = Region Hovedstaden, Region Midtjylland, Region Nordjylland, Region Sjælland, Region Syddanmark

 

Analysis of Variance

 Source DF Adj SS Adj MS F-Value P-Value

Region 4 728688 182172 10.86 0.000

Error 25 419501 16780

Total 29 1148189

Model Summary

S R-sq R-sq(adj) R-sq(pred)

129.538 63.46% 57.62% 47.39%

Means

 

Region N Mean StDev 95% CI

Region Hovedstaden 6 2861.6 129.0 (2752.7, 2970.5)

Region Midtjylland 6 2482.9 127.3 (2374.0, 2591.8)

Region Nordjylland 6 2451.2 128.5 (2342.3, 2560.2)

Region Sjælland 6 2523.5 120.8 (2414.6, 2632.4)

Region Syddanmark 6 2452.5 141.2 (2343.6, 2561.4)

 

Pooled StDev = 129.538

Q3: Are the expenses based on
Regions? Continued

One – Way ANOVA Test – Results

 

The Tukey Pairwise Comparisons:

Q3: Are the expenses based on
Regions? Continued

One – Way ANOVA Test – Results

 

The Tukey Pairwise Comparisons:

Region N Mean Grouping

Region Hovedstaden 6 2861.6 A

Region Sjælland 6 2523.5 B

Region Midtjylland 6 2482.9 B

Region Syddanmark 6 2452.5 B

Region Nordjylland 6 2451.2 B

 

Q3: Are the expenses based on
Regions? Continued

One-Way ANOVA Test- Results Summary

Step 1: Analysis of Variance

  • A one-way ANOVA test was conducted to determine if Health Care Costs was different for different regions.
  • Based on the p-value of 0.000, which is lower than 5%, there is sufficient evidence to establish the alternative hypothesis and the null hypothesis can therefore be rejected.

Step 2: Tukey Pairwise Comparisons

  • The means that do not share a letter are significantly different

Q4: Is there a significant relationship between Health Care Costs & Physician Visits & Hospitalizations?

Hypothesis:

Ho = There is no significant relationship between Health Care Costs & Hospitalizations & Doctors Visits

Ha = There is a significant relationship between Health Care & Hospitalizations & Doctors Visits

Q4: Is there a significant relationship between Health Care Costs & Doctors Visits & Hospitalizations? Continued

As indicated by the Fitted Line Plot, there is a slight positive correlation between Health Care Cost and number of Hospitalizations.

Q4: Is there a significant relationship between Health Care Costs & Doctors Visits & Hospitalizations? Continued

Based on this Fitted Line Plot, there is also a positive correlation between Health Care Costs and Doctors Visits.

Q4: Is there a significant relationship between Health Care Costs & Doctor Visits & Hospitalizations ? Continued

Multiple Linear Regression – Results

Regression Analysis: Total Health Care Expense versus Hospitalization, Doctor Visits

Model Summary

S R-sq R-sq(adj) R-sq(pred)

442359 91.81% 88.53% 62.05%

Coefficients

 Term Coef SE Coef T-Value P-Value VIF

Constant -45697573 7960116 -5.74 0.002

Hospitalization 40.6 15.4 2.63 0.047 1.70

Doctors Visits 0.570 0.155 3.68 0.014 1.70

 

Regression Equation

Total Health Care Expense = -45697573 + 40.6 Hospitalization + 0.570 Doctors Visits

Fits and Diagnostics for Unusual Observations

 

Total Health Std

Obs Care Expense Fit Resid Resid

8 14199570 13401087 798483 2.07 R

 

Q4: Is there a significant relationship between Health Care Costs & Doctor Visits & Hospitalizations? Continued

Multiple Linear Regression – Results Summary

Based on the p-values of 0.047 and o.o14, there is strong evidence to show that Total Health Care Cost is strongly correlated with the number of Hospitalizations and Doctors Visits. Since Doctors Visits has a lower p-value than Hospitalizations, they are slightly more statistically significant.

This is captured by the high correlation coefficient (r-value) of 0.9582 (sqrt of the R2)

The coefficient of determination (R2) is 0.9181

Accordingly the regression model fits the data fairly well and the R2 suggests that about 91% the variability in Total Health Care Cost can be explained by the number of Hospitalization & Doctors Visits

Q4: Is there a significant relationship between Health Care Costs & Doctor Visits & Hospitalizations? Continued

Multiple Linear Regression – Using the model for prediction

  • Given the low p-values obtained, there is an association/relationship between the output variable and the two input variables. Therefore the established regression model can be used for future predictions:
  • Y= -45697573 + 40.6 X1 + 0.570 X2

  • Y = Total Health Care Costs
  • X1= Hospitalization
  • X2= Doctors Visits

Q5: Are the Health Care Costs Based on Types of Benefits?

Hypothesis:

Ho = There is no difference in Health Care Cost between the Types of Benefits ( They are all the same)

Ha = There is some difference in the Health Care Cost between the Types of Benefits (They are not all the same)

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

According to the Interval Plot, there are some differences in Total Health Care Cost among different Types of Benefits. Total General Medical Treatment generates more Health Care costs than any of the other Type of Benefits.

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

One – Way ANOVA Test – Results

Factor = Type of Benefit Levels = 9

Values = CHIROPODIST, CHIROPRACTOR, DENTIST/DENTAL HYGIENIST, GENERAL MEDICAL TREATMENT, TOTAL, LABORATORIES, OTHER, PHYSIOTHERAPIST, PSYCHOLOGIST, SPECIALIST TOTAL

Analysis of Variance

 

Source DF Adj SS Adj MS F-Value P-Value

Type of Benefit 8 3.40087E+14 4.25109E+13 692.31 0.000

Error 63 3.86845E+12 61404028506

Total 71 3.43956E+14

 Model Summary

 

S R-sq R-sq(adj) R-sq(pred)

247798 98.88% 98.73% 98.53%

 

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

One – Way ANOVA Test – Results

 

Means

 

Type of Benefit N Mean StDev 95% CI

CHIROPODIST 8 36218 34027 (-138856, 211293)

CHIROPRACTOR 8 105851 8507 ( -69223, 280926)

DENTIST/DENTAL

HYGIENIST 8 1383767 87903 (1208692, 1558841)

GENERAL MEDICAL

TREATMENT, TOTAL 8 7085349 637825 (6910274, 7260423)

LABORATORIES 8 379401 49363 ( 204327, 554476)

OTHER 8 22236 9553 (-152838, 197311)

PHYSIOTHERAPIST 8 1047571 149539 ( 872496, 1222645)

PSYCHOLOGIST 8 173963 56543 ( -1111, 349038)

SPECIALIST, TOTAL 8 2853241 329805 (2678166, 3028315)

 

Pooled StDev = 247798

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

One – Way ANOVA Test – Results

 

The Tukey Pairwise Comparison:

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

One – Way ANOVA Test – Results

 

The Tukey Pairwise Comparison:

 

Type of Benefit N Mean Grouping

GENERAL MEDICAL TREATMENT, TOTAL 8 7085349 A

SPECIALIST, TOTAL 8 2853241 B

DENTIST/DENTAL HYGIENIST 8 1383767 C

PHYSIOTHERAPIST 8 1047571 C

LABORATORIES 8 379401 D

PSYCHOLOGIST 8 173963 D

CHIROPRACTOR 8 105851 D

CHIROPODIST 8 36218 D

OTHER 8 22236 D

 

Q5: Are the Health Care Costs Based on Types of Benefits? Continued

One – Way ANOVA Test – Results Summary

 

Step 1: Analysis of Variance

A one-way ANOVA test was conducted to determine if Health Care Costs was different for different Types of Health Benefits.

Based on the p-value of 0.000, which is lower than 10%, there is sufficient evidence to establish the alternative hypothesis and the null hypothesis can therefore be rejected.

Step 2: Tukey Pairwise Comparisons

The means that do not share a letter are significantly different

 

Q6: Are the Health Care Costs based on Socioeconomic Status?

Hypothesis:

Ho = There is no difference in Health Care Cost between the different Socioeconomic Statuses ( They are all the same)

Ha = There is some difference in the Health Care Cost between the different Socioeconomic Statuses (They are not all the same)

Q6: Are the Health Care Costs based on Socioeconomic Status? Continued

The Interval Plot shows that are some differences in Health Care Costs among Socioeconomic Statuses. The largest amount of Health Care Costs are generated among the Pensioner and Early Retirement group.

Q6: Are the Health Care Costs based on Socioeconomic Status? Continued

One –Way ANOVA Test – Results

Factor =Socioeconomic Status Levels= 11

Values = Assisting spouses, Employees higher level, Employees lowest level, Employees medium level, Other Employees, Pensioner and early retirement leave, Persons without any connection with labor market, Self-employed persons, Students, Top executives, Unemployed

Analysis of Variance

 

Source DF Adj SS Adj MS F-Value P-Value

Socioeconomic Status 10 1.53597E+14 1.53597E+13 233.06 0.000

Error 77 5.07467E+12 65904851335

Total 87 1.58672E+14

 

Model Summary

 

S R-sq R-sq(adj) R-sq(pred)

256719 96.80% 96.39% 95.82%

  

Q6: Are the Health Care Costs based on Socioeconomic Status? Continued

One –Way ANOVA Test – Results

Means

 

Socioeconomic Status N Mean StDev 95% CI

Assisting spouses 8 14525 906 (-166209, 195259)

Employees higher level 8 937345 346949 (756611, 1118079)

Employees lowest level 8 2080015 155515 (1899281, 2260749)

Employees medium level 8 901018 219780 (720284, 1081752)

Other Employees 8 1057416 163344 (876682, 1238150)

Pensioner and early retirement

leave 8 4644461 622852 (4463726, 4825195)

Persons without any connection

with labor market 8 2386846 321433 (2206111, 2567580)

Self-employed persons 8 430296 55901 (249562, 611030)

Students 8 266527 88923 (85793, 447261)

Top executives 8 163149 35173 ( -17585, 343883)

Unemployed 8 184599 43311 (3864, 365333)

Q6: Are the Health Care Costs based on Socioeconomic Status? Continued

One –Way ANOVA Test – Results

The Tukey Pairwise Comparison

Socioeconomic Status N Mean Grouping

Pensioner and early retirement leave 8 4644461 A

Persons without any connection

with labor market 8 2386846 B

Employees lowest level 8 2080015 B

Other Employees 8 1057416 C

Employees higher level 8 937345 C

Employees medium level 8 901018 C

Self-employed persons 8 430296 D

Students 8 266527 D

Unemployed 8 184599 D

Top executives 8 163149 D

Assisting spouses 8 14525 D

Q6: Are the Health Care Costs based on Socioeconomic Status? Continued

One –Way ANOVA Test – Results - Summary

Step 1: Analysis of Variance

  • A one-way ANOVA test was conducted to determine if Health Care Costs was different for among separate Socioeconomic Statuses.
  • Based on the p-value of 0.000, which is lower than 10%, there is sufficient evidence to establish the alternative hypothesis and the null hypothesis can therefore be rejected.

Step 2: Tukey Pairwise Comparisons

  • The means that do not share a letter are significantly different

Q7: Is there a significant relationship between Health Care Costs & Health Promotion Costs?

Hypothesis:

H0 = Health Promotion cost does not affect overall health expenses

Ha = Health Promotion costs decrease overall health expenses

Q7: Is there a significant relationship between Health Care Costs & Health Promotion Costs? Continued

The Fitted Line Plot indicates that there is a positive correlation between Health Care Costs and Health Promotion Cots.

Q7: Is there a significant relationship between Health Care Costs & Health Promotion Costs? Continued

Simple Linear Regression – Results

Regression Analysis: Total Health Care Expense_1 versus Total Promotion Costs

Model Summary

 S R-sq R-sq(adj) R-sq(pred)

255255 91.65% 88.86% 84.55%

Coefficients

 Term Coef SE Coef T-Value P-Value VIF

Constant 8761073 852274 10.28 0.002

Total Promotion Costs 11.02 1.92 5.74 0.011 1.00

Regression Equation

Total Health Care Expense_1 = 8761073 + 11.02 Total Promotion Costs

 

Q7: Is there a significant relationship between Health Care Costs & Health Promotion Costs? Continued

Simple Linear Regression – Results Summary

  • Based on the p-value of o.o11, there is strong evidence to show that Total Health Care Costs is strongly correlated with Health Promotion Costs in a positive relationship.
  • This is captured by the high correlation coefficient (r-value) of 0.9573 (sqrt of the R2)
  • The coefficient of determination (R2) is 0.9165
  • Accordingly the regression model fits the data fairly well and the R2 suggests that about 91% the variability in Total Health Care Cost can be explained by Health Promotion Costs.

Q7: Is there a significant relationship between Health Care Costs & Health Promotion Costs? Continued

Simple Linear Regression – Using the model for prediction

Given the low p-value, which is less than 5%, an association/relationship between Health Care Cost and Health promotion costs has been established. Therefore the regression model can be used for future predictions.

Y = 8761073 + 11.02x

Y = Health Care Cost

X =Health Promotion Cost

Conclusion

Outcome of my tests:

Based on my two sample t-test there is evidence that there is a difference in Health Care Costs among men and women. Women cost more, which may be a result of them having a longer life expectancy and generating costs associated with childbirth. This may skew the Women’s cost compared to men.

My One-Way ANOVA tests revealed that there is statically significant evidence to show that there is some differences in Health Care Costs among different age groups, regions, types of benefits and socioeconomic statuses.

The 60-69 age group generates more Health Care Costs than any other age group, which may be a result of that the baby boomer generation has reached this age group.

The Region Hovedstaden, which is where the capital is located, generates more Health Care Costs per capita. This may be a result of the fact that this is where the University Hospital is located.

The Type of Benefit that generates more Health Care Costs is General Medical Treatment, which was not surprising given that that it contains all general medical visits.

The Pensioner and Early Retirement group was the socioeconomic group that generated most Health Care Costs, which makes sense since they belong to the 60-69 age group.

Conclusion – Continued

  • The multiple and simple linear regression I ran illustrate that there is a relationship between Health Care Cost and Hospitalizations and Doctors Visits as well as between Health Care Costs and Health Promotion Costs.

Application of Results:

  • Statistics play a fundamental role in showing trends such as the ones discussed in this project which are used to inform policy decisions regarding health care costs.

Sources

The main source for my project is the Dansk Statistics Bank:

http://www.dst.dk/en.aspx

http://www.statistikbanken.dk/statbank5a/default.asp?w=1280

Other Sources:

http://denmark.dk/en/quick-facts/facts/

http://pgpf.org/Chart-Archive/0006_health-care-oecd

http://www.expatindenmark.com/livingindenmark/pages/health-care.aspx