EXERCISE 3 AND 4

Week 1, Exercise:

The attached dataset, provides some information about hospitals in 2011 and 2012, download the data and then complete the descriptive table. Please use the following format to report your findings.

Table 1. Descriptive statistics between hospitals in 2011 & 2012

Based on your findings in which years hospitals had better performance? Please write a short paragraph and describe your findings. The hospitals had better performance in 2012 compared to 2011. The mean number of hospital beds in 2012 was slightly higher than the mean number of hospital beds in 2011. In terms of revenue, the mean revenue in 2012 was higher than the mean revenue in 2011. The total cost in 2011 was also higher than the total cost in 2012. For these variables, the p.value is less than 0.05 hence the null hypothesis is not rejected at 95% confidence interval. This implies that the means between the two groups are not different.

(Note: Master RStudio script is available for this exercise, but you need to modify that for this analysis)

Week 2, Exercise:

Use the dataset from week1 exercise and then answer the following questions:

1) Compare the following information between teaching and non-teaching hospitals.

2) What are the main significant differences between teaching and non-teaching hospitals? (use ttest)

3) Comparing hospital net-benefit which hospitals has better performance? To answer this question first compute the hospital net benefits with subtracting hospital costs and revenues and then use ttest to compare the significant differences between teaching and non-teaching hospitals.

4) Use a box-plot and compare hospitals-cost and hospital-revenues between teaching and non-teaching hospitals.

The costs were higher for teaching hospitals (1) compared to non-teaching hospitals (0)

The Revenues were higher for teaching hospitals (1) compared to non-teaching hospitals (0)

5) Write a short paragraph and describe your findings.

Based on the t-.test results shown below, there were no significant differences between teaching and non-teaching hospitals for all the variables. This is because as shown below, the p.value is less than 0.05 hence at 95% confidence Interval, we do not reject the null hypothesis (There is no significant difference in the means).

For the hospital net benefit, the p. value is also less than 0.05 hence at 95% confidence interval, the null hypothesis is not rejected, hence there is no significant difference between teaching and non-teaching hospitals in terms of performance.

Table 2. Descriptive statistics between teaching and non-teaching hospitals, 2011 & 2012

(Note: Master RStudio script is available for this exercise, but you need to modify that for this analysis)

Week 3 & 4, Exercise:

The dataset provides Herfindahl–Hirschman Index, and herfindahel index categories, please use the herf_cat variable and answer the following questions:

https://www.urban.org/sites/default/files/publication/50116/2000212-Addressing-Pricing-Power-in-Health-Care-Markets.pdf

For this exercise you do not need to compute the HHI, but if you have any questions, please do not hesitate to ask me, but try to learn more about this you will need that to report your findings.

Use the dataset from week1 exercise and then answer the following questions:

1) Compare the following information between hospitals located in high, moderate and low competitive markets? (table 1)

2) What are the main significant differences between hospitals in different markets? (use Anova test)

3) Use the density curves and compare hospitals cost and revenues between three markets.

4) What is the impact of being in high-competitive market on hospital revenues and cost? Do you think being in high-competitive market has positive impact on net hospital benefits? What about the number of Medicare and Medicaid discharge? Do you think hospitals in higher completive market more likely to accept more Medicare and Medicaid patients? What are the impact of other variables? Please discuss your findings in 1-2 paragraphs.

(Note: to answer to the last question, please compute the ratio-medicare-discharge and ratio-medicaid-discharge first and then run 2 ttest ) high vs. moderate and high vs. low competitive market), please support your findings with box-plot).

Table 3. Comparing hospital characteristics and market, 2011 and 2012

(Note: Master RStudio script is available for this exercise, but you need to modify that for this analysis)

01

0e+00

1e+09

2e+09

3e+09

Figure 1. Boxplot of Hospital Costs for teaching & Non-teaching hospitals

Teaching/Non-Teaching

Hospital Costs

01

0e+00

1e+09

2e+09

3e+09

4e+09

Figure 1. Boxplot of Hospital Revenues for teaching & Non-teaching hospitals

Teaching/Non-Teaching

Hospital Revenue