Report
A two-stage estimation of hospital quality using mortality outcome measures: An application using hospital administrative data
CL Chua, A Palangkaraya, J Yong
Health Economics | WILEY | Published : 2010
DOI: 10.1002/hec.1560
Abstract
This paper proposes a method of deriving a quality indicator for hospitals using mortality outcome measures. The method aggregates any number of mortality outcomes into a single indicator via a two-stage procedure. In the first stage, mortality outcomes are risk-adjusted using a system of seemingly unrelated regression equations. These risk-adjusted mortality rates are then aggregated into a single quality indicator in the second stage via weighted least squares. This method addresses the dimensionality problem in measuring hospital quality, which is multifaceted in nature. In addition, our method also facilitates further analyses of determinants of hospital quality by allowing the resulting..
View full abstractGrants
Awarded by Australian Research Council
Funding Acknowledgements
We thank anonymous reviewers for many insightful comments and helpful suggestions. Research funding by the Australian Research Council (Linkage Grant LP0455325) is gratefully acknowledged. We are grateful to our linkage partner the Victorian Department of Human Services for providing the data. We are also indebted to Richard Bolitho, Kaye Brown, Paul Jensen, Phyllis Rosendale, Tony Scott, Vijaya Sundararajan, Christine Stone, Beth Webster, and seminar participants at the Department of Human Services and the Melbourne Institute for providing valuable inputs and advice during the course of this research. We also thank John Creedy, whose suggestions help improve the presentation of the paper.