Table 8.

Est. of Eq 2: difference-in-difference estimation by hospital & payer class: Y = MS-DRG weight in the current year.

Hospital Ownership
	Government	Not For Profit	For Profit
Post * expanded DRG	0.0528***	0.0647***	0.0657***
	(0.0133)	(0.00565)	(0.00685)
2007 weights	0.870***	0.864***	0.864***
	(0.0168)	(0.0127)	(0.0122)
Observations	1353177	4000567	2304196
Payer Class
	Medicare	Medicaid	Private Ins.
Post * expanded DRG	0.0498***	0.00572	0.0436***
	(0.00252)	(0.00340)	(0.00305)
2007 weights	0.937***	0.944***	0.933***
	(0.00328)	(0.00494)	(0.00551)
Observations	11792191	4112707	8510458

Note: This model controls for age, race, and gender, and year, DRG, and hospital fixed effects. Post ∗ ExpandedDRG is an indicator variable equal to 1 if the DRG group expanded in the DRG reform and is in the post expansion period. We base these classifications for hospital type and payer class on the variables HOSP CONTROL and PAY1 from the HCUP data, respectively. Standard errors are in parentheses and clustered at the hospital level.

^*p<0.05

^**p<0.01

^***p<0.001.