A Two-Stage Estimation of Hospital Quality Using Mortality Outcome Measures: An Application Using Hospital Administrative Data

29 Pages Posted: 31 Jul 2008

See all articles by Chew Lian Chua

Chew Lian Chua

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Alfons Palangkaraya

Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology

Jongsay Yong

University of Melbourne - Melbourne Institute: Applied Economic & Social Research

Date Written: July, 24 2008

Abstract

This paper proposes a method of deriving a quality indicator for hospitals using mortality outcome measures. The method aggregates any number of mortality outcome measures observed over several years into a single indicator. We begin with the supposition that there exists an abstract quality index which drives all observed mortality outcomes in each hospital. This abstract quality index is not directly observable but manifested via the observed mortality outcomes, which we make use of to provide an estimate of the abstract quality index. The method is applied to a sample of heart disease episodes extracted from hospital administrative data from the state of Victoria, Australia. Using the quality estimates, we show that teaching hospitals and large regional hospitals provide higher quality of care than other hospitals and this superior performance is related to hospital size.

Keywords: Hospital quality, Risk-adjusted mortality, Hospital administrative data.

JEL Classification: I10, I12

Suggested Citation

Chua, Chew Lian and Palangkaraya, Alfons and Yong, Jongsay, A Two-Stage Estimation of Hospital Quality Using Mortality Outcome Measures: An Application Using Hospital Administrative Data (July, 24 2008). Available at SSRN: https://ssrn.com/abstract=1175619 or http://dx.doi.org/10.2139/ssrn.1175619

Chew Lian Chua

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
83443728 (Phone)

Alfons Palangkaraya

Centre for Transformative Innovation, Faculty of Business and Law, Swinburne University of Technology ( email )

AGSE Building
Room 117
Hawthorne, Victoria 3121
Australia
+61392145826 (Phone)

Jongsay Yong (Contact Author)

University of Melbourne - Melbourne Institute: Applied Economic & Social Research ( email )

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia
+613-83445354 (Phone)
+613-83445630 (Fax)

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