Table 9.
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 | 2423.5*** (4.52) |
149.6 (0.57) |
2273.9*** (5.16) |
3.90*** (3.42) |
−0.74*** (−2.70) |
4.64*** (4.13) |
−0.054** (−1.96) |
N of discharges | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | |
N of provider pairs | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | |
Stratified by profit status | ||||||||
For-profit hospitals | Vertically integrated | 2518.2*** (3.57) |
−223.7 (−0.64) |
2741.9*** (4.76) |
5.52*** (3.92) |
−0.817** (−2.40) |
6.34*** (4.64) |
−0.070** (−1.99) |
N of discharges | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | |
N of provider pairs | 62,328 | 62,328 | 62,328 | 62,328 | 62,328 | 62,328 | 62,328 | |
Not-for-profit hospitals | Vertically integrated | 1142.6 (1.08) |
631.29 (1.57) |
511.32 (0.54) |
−0.542 (−0.20) |
0.204 (0.32) |
−0.75 (−0.28) |
0.045 (0.67) |
N of discharges | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | |
N of provider pairs | 17,362 | 17.362 | 17,362 | 17,362 | 17,362 | 17,362 | 17,362 | |
High cost and high variance conditions | ||||||||
Major joint replacement (DRG 544) | Vertically integrated | 985.9 (0.96) |
−875.0 (−1.63) |
1861.0** (2.27) |
7.10*** (3.27) |
−0.18 (−0.50) |
7.27*** (3.47) |
0.058 (1.21) |
N of discharges | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | |
N of provider pairs | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | |
Hip & femur procedures with MCC (DRG 210) | Vertically integrated | 4031.7 (1.39) |
−594.26 (−0.28) |
4,626.0** (2.28) |
10.34* (1.87) |
2.82** (2.06) |
7.52 (1.38) |
−0.107 (−0.79) |
N of discharges | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | |
N of provider pairs | 24,825 | 24,825 | 24.825 | 24,825 | 24,825 | 24,825 | 24,825 | |
Low cost and low variance conditions | ||||||||
Kidney & urinary tract infections (DRG 321) | Vertically integrated | 3285.0 (1.53) |
463.8 (1.52) |
2821.3 (1.33) |
2.42 (0.41) |
1.08 (1.22) |
1.34 (0.22) |
−0.043 (−0.28) |
N of discharges | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | |
N of provider pairs | 23,135 | 23,135 | 23,135 | 12,135 | 23,135 | 23,135 | 23,135 | |
Nutritional & misc metabolic disorders (DRG 297) | Vertically integrated | 2246.0 (0.82) |
−168.9 (−0.41) |
2414.9 (0.90) |
−0.50 (−0.06) |
0.95 (0.74) |
−1.46 (−0.19) |
0.227 (1.04) |
N of discharges | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | |
N of provider pairs | 19.208 | 19.208 | 19.208 | 19,208 | 19,208 | 19,208 | 19,208 | |
Syncope & collapse (DRG 141) | Vertically integrated | 2206.6 (0.60) |
−544.8 (−0.75) |
2751.3 (0.76) |
2.39 (0.24) |
−1.95 (−1.23) |
4.34 (0.43) |
−0.041 (−0.16) |
N of discharges | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | |
N of provider pairs | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 | |
| ||||||||
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 | −204.4 (−1.23) |
−326.3*** (−3.53) |
121.8 (0.86) |
−0.76** (−2.09) |
−0.14 (−1.48) |
−0.62* (−1.78) |
0.005 (0.54) |
N of discharges | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | 2,651,748 | |
N of provider pairs | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | 87,440 | |
Stratified by profit status | ||||||||
For-profit hospitals | Informally integrated | −91.9 (−0.48) |
−210.1*** (−2.64) |
118.2 (0.70) |
−0.58 (−1.36) |
−0.18* (−1.75) |
−0.40 (−0.96) |
−0.000 (−0.00) |
N of discharges | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | 1,964,483 | |
N of provider pairs | 62,328 | 62,238 | 62,238 | 62,328 | 62,238 | 62,328 | 62,328 | |
Not-for-profit hospitals | Informally integrated | −145.8 (−0.37) |
−280.2* (−1.78) |
134.4 (0.37) |
−2.18** (−2.20) |
−0.44* (−1.67) |
−1.74* (−1.77) |
0.022 (0.79) |
N of discharges | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | 340,042 | |
N of provider pairs | 17,362 | 17,362 | 17,362 | 17,362 | 17,362 | 17,362 | 17,362 | |
High cost and high variance conditions | ||||||||
Major joint replacement (DRG 544) | Informally integrated | −475.5 (−1.35) |
−232.6 (−1.34) |
−242.9 (−0.88) |
−1.54** (−2.15) |
−0.06 (−0.46) |
−1.48** (−2.16) |
0.014 (0.85) |
N of discharges | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | 352,519 | |
N of provider pairs | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | 38,891 | |
Hip & femur procedures with MCC (DRG 210) | Informally integrated | −708.5 (−0.88) |
−801.8** (−1.98) |
93.3 (0.14) |
1.03 (0.58) |
0.14 (0.31) |
0.89 (0.50) |
0.020 (0.41) |
N of discharges | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | 96,435 | |
N of provider pairs | 24,825 | 24,825 | 24,825 | 24,825 | 24,825 | 24,825 | 24,825 | |
Low cost and low variance conditions | ||||||||
Kidney & urinary tract infections (DRG 321) | Informally integrated | 413.8 (0.56) |
−126.6 (−1.12) |
540.4 (0.74) |
−2.72 (−1.40) |
−0.64** (−2.07) |
−2.08 (−1.08) |
0.046 (0.80) |
N of discharges | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | 96,365 | |
N of provider pairs | 23,135 | 23,135 | 23,135 | 23,135 | 23,135 | 23,135 | 23,135 | |
Nutritional & misc metabolic disorders (DRG 297) | Informally integrated | 236.2 (0.27) |
−276.7* (−1.80) |
512.9 (0.60) |
−0.38 (−0.15) |
−0.62 (−1.50) |
0.23 (0.09) |
0.026 (0.36) |
N of discharges | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | 59,289 | |
N of provider pairs | 19,208 | 19,208 | 19,208 | 19,208 | 19.208 | 19,208 | 19,208 | |
Syncope & collapse (DRG 141) | Informally integrated | 640.5 (0.57) |
−85.2 (−0.46) |
725.7 (0.65) |
1.32 (0.42) |
−0.15 (−0.29) |
4.34 (0.43) |
−0.134 (−1.55) |
N of discharges | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | 48,841 | |
N of provider pairs | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 | 17,389 |
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.