Table 5.

Impact of Hospitalization on Collections

	Number of Collections to Date			Collection Balances
	All	Medical	Non-Medical	All	Medical	Non-Medical
	(1)	(2)	(3)	(4)	(5)	(6)
Panel A. Non-Elderly Insured (Ages 25 to 64)
12-month effecta	0.110	0.095	0.011	122	127	18
	(0.005)	(0.002)	(0.003)	(13)	(7)	(16)
	[<.001]	[<.001]	[0.001]	[<.001]	[<.001]	[0.26]
48-month effectb	0.210	0.180	0.034	302	271	101
	(0.019)	(0.008)	(0.014)	(37)	(18)	(47)
	[<.001]	[<.001]	[0.017]	[<.001]	[<.001]	[0.03]
Pre-hospitalization mean	0.920	0.200	0.720	1,230	292	1,086
Number of Individuals	383,718	383,718	383,718	383,718	375,844	375,844
Number of Observations	3,131,534	3,131,534	3,131,534	3,131,534	2,208,517	2,208,517
Panel B. Non-Elderly Uninsured (Ages 25 to 64)
12-month effecta	0.97	0.85	0.12	4,469	4,259	246
	(0.012)	(0.008)	(0.007)	(51)	(45)	(36)
	[<.001]	[<.001]	[<.001]	[<.001]	[<.001]	[<.001]
48-month effectb	1.3	1.2	.11	6,199	6,144	195
	(0.045)	(0.028)	(0.028)	(130)	(102)	(100)
	[<.001]	[<.001]	[<.001]	[<.001]	[<.001]	[0.051]
Pre-hospitalization mean	2.3	0.59	1.7	3,529	1,292	2,762
Number of Individuals	153,617	153,617	153,617	153,617	151,343	151,343
Number of Observations	1,256,759	1,256,759	1,256,759	1,256,759	913,516	913,516
Panel C. Elderly (Ages 65 and Older)
12-month effecta	0.027	0.026	0	24	17	4
	(0.002)	(0.001)	(0.002)	(8)	(3)	(11)
	[<.001]	[<.001]	[0.8]	[0.002]	[<.001]	[.74]
48-month effectb	0.038	0.049	−0.011	84	37	39
	(0.010)	(0.004)	(0.008)	(24)	(8)	(34)
	[<.001]	[<.001]	[0.19]	[<.001]	[<.001]	[0.25]
Pre-hospitalization mean	0.24	0.05	0.19	428	75	422
Number of Individuals	414,547	414,547	414,547	414,547	387,839	387,839
Number of Observations	2,959,802	2,959,802	2,959,802	2,959,802	1,946,208	1,946,208

Notes: Samples are non-elderly insured, uninsured, and the elderly (see Appendix Table 13, columns 3, 6, and 9). All columns report effects based on OLS estimates of equation (5). Pre-hospitalization means are calculated using the credit report from January of the calendar year preceding the hospitalization (between 12 and 23 months before the hospitalization). All variables are observed from 2002 to 2011, except medical and non-medical collection balances which are only observed beginning in 2005. Standard errors (clustered on the individual) are in parentheses and p-values are in brackets. All estimates are weighted to adjust for individuals’ sampling probabilities.

^a12-month effect is calculated from equation (5) as 144*β₂+1,728*β₃

^b48-month effect is calculated from equation (5) as 2,304*β₂+110,592*β₃+46,656*β₄+13,824*β₅