Table 2.

Analysis of the Effect of Markups on 30-day Mortality Rates

	Coefficient on Medicare Markup	Coefficient on Medicare Markup* Medicare Share Interaction	Combined Effect on Mortality at Average Medicare Share†	Simulated Effect of 1997–2005 Declines in Markup on Mortality‡
All hospitals	−0.055*	−0.0301*	−0.071*	0.0139*
All urban hospitals	−0.031*	−0.030*	−0.046*	0.0100*
Lagged total margin
Less than −0.093	−0.032 (p = .116)	−0.022 (p = .460)	−0.043 (p = .015)	0.0094 (p = .015)
Between −0.092 and −0.007	−0.025 (p = .122)	−0.032 (p = .133)	−0.041 (p = .002)	0.0089 (p = .002)
Between −0.006 and 0.053	−0.061*	0.015 (p = .389)	−0.053*	0.0115*
Greater than 0.053	−0.018 (p = .150)	−0.056 (p = .002)	−0.046*	0.0101*

Note. Robust standard errors with hospital service line clustering were used for hypothesis tests.

^*p ≤ .001.

^†(β₁ + β₂*Medicare Share).

^‡(β₁ + β₂*Medicare Share)*Δ Markup.

Source: Authors estimates using an ordinary least-squares regression controlling for predicted mortality; service line time trends; year-fixed effects; and hospital service line-fixed effects.