Table 10.
Vertical integration | ||||||||
---|---|---|---|---|---|---|---|---|
| ||||||||
Total payment | Hospital payment | PAC payment | Total length of stay | Hospital length of stay | PAC length of stay | 30-day readmission | ||
Primary specification | Vertical integration | −303.2** (−2.35) |
−261.5** (−2.03) |
−41.7 (−0.94) |
−1.07* (−1.95) |
−0.10 (−1.28) |
−0.96* (−1.78) |
−0.004 (−0.49) |
N of discharges | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | |
N of provider pairs | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | |
Stratified by profit status | ||||||||
For-profit hospitals | Vertically integrated | −411.3** (−2.46) |
−358.1** (−2.09) |
−53.3 (−0.91) |
−1.17* (−1.66) |
−0.09 (−0.90) |
−1.08 (−1.55) |
0.000 (−0.05) |
N of discharges | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | |
N of provider pairs | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | |
Not-for-profit hospitals | Vertically integrated | −468.7** (−2.07) |
−357.8* (−1.75) |
−110.9 (−1.30) |
0.55 (0.47) |
−0.26 (−1.49) |
0.81 (0.69) |
−0.013 (−0.67) |
N of discharges | 159,922 | 159,922 | 159,922 | 159,922 | 159,922 | 159,922 | 159,922 | |
N of provider pairs | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | |
High cost and high variance conditions | ||||||||
Major joint replacement (DRG 544) | Vertically integrated | −565.2* (−2.76) |
−371.8** (−1.97) |
−193.4*** (−3.20) |
−1.56** (−2.42) |
−0.18*** (−2.76) |
−1.38** (−2.18) |
0.011 (1.57) |
N of discharges | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | |
N of provider pairs | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | |
Cardiac valve and other major cardiothoracic surgery (DRG 105) | Vertically integrated | −1016.3 (−0.57) |
−1188.7 (−0.68) |
172.5 (0.94) |
−0.52 (−0.23) |
−1.13 (−1.57) |
0.60 (0.28) |
0.086 (1.34) |
N of discharges | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | |
N of provider pairs | 5780 | 5780 | 5780 | 5780 | 5780 | 5780 | 5780 | |
Low cost and low variance conditions | ||||||||
Kidney & urinary tract infections (DRG 321) | Vertically integrated | −30.8 (−0.08) |
14.5 (0.07) |
−45.4 (−0.15) |
−2.00 (−0.67) |
−0.21 (−0.48) |
−1.79 (−0.60) |
0.103 (1.39) |
N of discharges | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | |
N of provider pairs | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | |
Cardiac arrhythmia (DRG 139) | Vertically integrated | −42.4 (−0.12) |
−140.2 (−0.59) |
97.8 (0.41) |
3.06 (0.93) |
0.05 (0.11) |
3.01 (0.91) |
0.057 (0.69) |
N of discharges | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | |
N of provider pairs | 9353 | 9353 | 9353 | 9353 | 9353 | 9353 | 9353 | |
Transient ischemia (DRG 524) | Vertically integrated | 14.8 (0.03) |
136.2 (0.38) |
−121.4 (−0.36) |
−1.78 (−0.44) |
0.96* (1.75) |
−2.74 (−0.68) |
−0.062 (−0.64) |
N of discharges | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | |
N of provider pairs | 8022 | 8022 | 8022 | 8022 | 8022 | 8022 | 8022 | |
| ||||||||
Informal integration | ||||||||
| ||||||||
Total payment | Hospital payment | PAC payment | Total length of stay | Hospital length of stay | PAC length of stay | 30-day readmission | ||
| ||||||||
Primary specification | Informally integrated | 32.4 (0.54) |
47.1 (0.92) |
−14.7 (−0.63) |
−0.41 (−1.43) |
−0.02 (−0.48) |
−0.39 (−1.35) |
−0.002 (−0.47) |
N of discharges | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | 1,318,577 | |
N of provider pairs | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | 56,093 | |
Stratified by profit status | ||||||||
For-profit hospitals | Informally integrated | −21.1 (0.29) |
17.2 (0.26) |
−38.3 (−1.31) |
−0.39 (−1.01) |
−0.04 (−0.66) |
−0.35 (−0.90) |
−0.01 (−1.24) |
N of discharges | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | 1,003,259 | |
N of provider pairs | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | 36,296 | |
Not-for-profit hospitals | Informally integrated | 108.2 (1.02) |
101.5 (1.12) |
6.7 (0.15) |
−1.49*** (−2.67) |
0.04 (0.43) |
−1.53*** (−2.75) |
−0.005 (−0.40) |
N of discharges | 159,992 | 159,992 | 159,992 | 159,992 | 159,992 | 159,992 | 159,992 | |
N of provider pairs | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | 14,903 | |
High cost and high variance conditions | ||||||||
Major joint replacement (DRG 544) | Informally integrated | 75.3 (0.75) |
106.0 (1.24) |
−30.6 (−0.80) |
0.02 (0.06) |
−0.03 (−0.74) |
0.05 (0.14) |
0.003 (0.66) |
N of discharges | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | 288,402 | |
N of provider pairs | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | 22,466 | |
Cardiac valve and other major cardiothoracic surgery (DRG 105) | Informally integrated | −459.9 (−0.39) |
−282.3 (−0.24) |
−177.6 (−1.64) |
−3.01* (−1.73) |
−0.36 (−0.71) |
−2.65 (−1.60) |
−0.069 (−1.60) |
N of discharges | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | 27,100 | |
N of provider pairs | 5780 | 5780 | 5780 | 5780 | 5780 | 5780 | 5780 | |
Low cost and low variance conditions | ||||||||
Kidney & urinary tract infections (DRG 321) | Informally integrated | 327.1 (1.45) |
107.4 (1.08) |
219.7 (1.19) |
0.87 (0.51) |
0.34 (1.38) |
0.53 (0.32) |
−0.603 (−1.42) |
N of discharges | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | 32,758 | |
N of provider pairs | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | 10,384 | |
Cardiac arrhythmia (DRG 139) | Informally integrated | 398.4** (2.02) |
214.1* (1.69) |
184.3 (1.26) |
−1.49 (0.75) |
0.13 (0.45) |
−1.62 (−0.82) |
−0.055 (−1.09) |
N of discharges | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | 31,004 | |
N of provider pairs | 9353 | 9353 | 9353 | 9353 | 9353 | 9353 | 9353 | |
Transient ischemia (DRG 524) | Informally integrated | −168.1 (−0.71) |
−52.0 (0.37) |
−116.1 (−0.59) |
−2.32 (−0.97) |
−0.04 (−0.12) |
−2.28 (−0.95) |
0.015 (0.30) |
N of discharges | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | 23,214 | |
N of provider pairs | 8022 | 8022 | 8022 | 8022 | 8022 | 8022 | 8022 |
Note: Regressions include all the covariates reported in Table 3, a full set of DRG controls, hospital-PAC-pair fixed effects, and year fixed effects.
Robust t-statistics in parentheses.
p < .10,
p < .05,
p < .01.