BE 608
Looking forward to seeing what you come up with!
Our final exam is scheduled for December 14 at 6:30pm.
Any big mergers in your state? What does the hospital market look like? Any regulatory activity to prevent mergers or acquisitions?
Why did life expectancy improve?
About half of the mortality gain from 1900 to 1940 due to water chlorination and filtration (Cutler and Miller 2005).
A large percent (10-15%, depending on source) due to improved nutrition.
Gains in later years partly attributable to decreased smoking rates and improved seatbelts/car safety
All are factors unrelated to "medical care" (as traditionally conceived)
There is a strong relationship between income and health
Chetty et al 2016 JAMA: Descriptive paper
Data on earned income:
Data on death:
Methods
Life expectancy improvements are largest at the top, implying greater inequality over time:
Text
Some places particularly bad for low income individuals -- what is correlated with low life expectancy among low income?
The strongest correlates of health expectancy are, for the most part, things that do not involve accessing and using medical care.
Strongest correlates:
Not correlated:
Chetty et al 2016 shows that over time, high earners and low earners are experiencing health outcomes that are increasingly unequal.
Large gains for health for wealthy, stagnation or even worsening health for poor.
Oregon Health Insurance Experiment:
Moving to Opportunity:
Ludwig et al New England Journal of Medicine 2011
Baicker et al NEJM 2013
Factors affecting health not directly related to medical care:
Education
Nutrition
Racism
Substance abuse
Housing stability
Environmental quality
Behaviors
Much higher mortality rates for non-Hispanic Black vs non-Hispanic white or Hispanic (although some convergence in recent years)
Long history of horrific treatment of Black patients by the medical community in the United States. One example: Tuskegee study of untreated syphilis in black men (1932)
These are not issues that remain "in the past":
Structural factors (e.g. historical disinvestment, segregation) may underlie these health gaps, but the evidence suggests increasing representation as a way to reduce these disparities.
Case and Deaton PNAS 2015: document rising mortality rates among those with low levels of education.
More common than deaths from car accidents.
Source: CDC
Far worse drug overdose deaths during COVID--93,331 in 2020 and 80,816 in 2021
Vox Media, based on data from the UN International Narcotics Control Board
Other proposed drivers:
Healthcare hotspotting
is the strategic use of data to reallocate resources to a small subset of high-needs, high-cost patients.
Source: United HC presentation
United HealthCare covers 6.4 million Medicaid beneficiaries.
A small percentage of them account for a large amount in spending.
(Quote from Forbes, 2018):
"A homeless man in Phoenix named T.J. made 254 trips to the emergency room, had 32 hospital admissions and cost UnitedHealth Group, the nation’s largest health insurance company, and the U.S. healthcare system more than $294,000 since 2015."
“Social determinants of health, like food security or stable housing issues, sit upstream from and weigh heavily on gaps in care,” UnitedHealthcare CEO Steve Nelson told analysts on the company’s first quarter earnings call. “Data from other countries and our own experience indicate social investments reduce health care costs, and addressing these social determinants is the next frontier in serving the whole person here in the U.S. "
Source: ABC News. Ohio Health family practice partnering with local food banks to provide nutrition support. Costs ~$7 per person.
Everyone wants to reduce cost and improve outcomes.
Is the path forward through targeting healthy behavior, the environmental setting, access to housing, nutritional assistance or cash assistance (or something else)?
Companies are eager for an answer to this question!
Randomized controlled study of the Camden Coalition "hotspotter" program:
Finkelstein, Zhou, Taubman and Doyle
New England Journal of Medicine 2019
One attempted solution for firms: the "Workplace Wellness" program.
Offer incentives to lose weight, quit smoking, visit the gym more etc.
Currently 50 million employees have access to these types of programs, and firms with these programs spend on average $742 per employee, according to a recent United HC survey. An $8 billion industry!
Jones, Molitor and Reif 2019 randomly assigned eligibility for a workplace wellness program, and the size of financial incentives, at the University of Illinois.
Wellness program offered employees an incentive of $75 per semester if they engaged in at least one "wellness activity" that met once a week for 6 to 12 weeks, plus $200 for signing up and taking a health risk assessment.
E.g., weight watchers, stress management class, smoking cessation program
Authors find that previous literature looking at differences across wellness plan participants and non-participants was driven by selection, i.e. those who choose to participate in a wellness program tend to be healthier anyway.
Who signed up (red) versus who didn't (blue)
Other ongoing randomized controlled trials:
Nutritional Supports for At-Risk Patients
Smoking Cessation Commitment Devices
Y Combinator Universal Basic Income
And other projects--more evidence will be here soon!
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Allcott et al. 2019 Quarterly Journal of Economics based on Neilsen Scanner Panel
Allcott et al. 2019 QJE
Why? Differential availability: explains only about 10%
But lowering the prices on healthy food could eliminate disparities (at a cost of about 15% of the FNS budget)