Choose Your Desired Option(s)
Question #1 (15 credits):[RStudio Users and Excel Users]
The FINAL EXAM dataset, provides some information about hospitals in 2011 and 2012, download the FINAL EXAM data and then complete the descriptive table. Please answer the following questions.
- In term of hospital characters what are the significant difference between 2011 and 2012?
- In term of socio-economic variables what are the significant difference between 2011 and 2012?
To report the “Per Capita Hospital Beds to Population”, you need to divide “total_hospital_beds/tot_population)
- Based on your findings in which years hospitals had better performance? How hospital performance related to hospital characteristics and socio-economic characteristics? Please write at least three main different movements between 2011 and 2012.
Table 1. Descriptive statistics between hospitals in 2011 & 2012
2011 | 2012 | p-value | |||||
N | Mean | St. Dev | N | Mean | St. Dev | ||
Hospital Characteristics | |||||||
1. Hospital beds | 100 | 150 | 0.004 | ||||
2. Number of paid Employee | |||||||
3. Number of non-paid Employee | |||||||
4. Internes and Residents | |||||||
5. System Membership | |||||||
6. Total hospital cost | |||||||
7. Total hospital revenues | |||||||
8. Hospital net benefit | |||||||
9. Available Medicare days | |||||||
10. Available Medicaid days | |||||||
11. Total Hospital Discharge | |||||||
12. Medicare discharge | |||||||
13. Medicaid discharge | |||||||
Socio-Economic Variables | |||||||
14. Per Capita Hospital Beds to Population | |||||||
15. Percent of population under poverty | |||||||
16. Percent of Female population under poverty | |||||||
17. Percent of Male population under poverty | |||||||
18. Median Household Income |
Question #2 (15 credits): [RStudio Users and Excel Users]
Use the final exam dataset and then answer the following questions:
- Compare the following information between for-profit and non-for-profit hospitals.
- What are the main significant differences between for-profit and non-for-profit hospitals? Which test is the best fit test? Why?
- Use a box-plot and compare Hospital net benefit between for-profit and non-for-profit hospitals.
- Show another scatter plot and compare hospital cost (x-axes) and revenue (y-axes) and discuss your findings?
- Comparing hospital net-benefit which hospitals has better performance? To answer this question first compute the hospital net benefits with subtracting hospital costs and revenues and then use ttest to compare the significant differences between FP and NFP hospitals.
- Overall, what are the main significant differences between for-profit and non-for-profit hospitals?
Table 2. Descriptive statistics between FP & NFP
For Profit | Non-For-Profit | p-value | |||||
N | Mean | St. Dev | N | Mean | St. Dev | ||
Hospital Characteristics | |||||||
1. Hospital beds | |||||||
2. Number of paid Employee | |||||||
3. Number of non-paid Employee | |||||||
4. Internes and Residents | |||||||
5. System Membership | |||||||
6. Total hospital cost | |||||||
7. Total hospital revenues | |||||||
8. Hospital net benefit | |||||||
9. Available Medicare days | |||||||
10. Available Medicaid days | |||||||
11. Total Hospital Discharge | |||||||
12. Medicare discharge | |||||||
13. Medicaid discharge | |||||||
Socio-Economic Variables | |||||||
14. Per Capita Hospital Beds to Population | |||||||
15. Percent of population under poverty | |||||||
16. Percent of Female population under poverty | |||||||
17. Percent of Male population under poverty | |||||||
18. Median Household Income |
Question #3 (15 credits): [RStudio Users and Excel Users]
The dataset provides Herfindahl–Hirschman Index for health insurance market, please use the herf_ins variable and answer the following questions:
For this exercise you do not need to compute the HHI, but if you have any questions, please do not hesitate to ask me, but try to learn more about this you will need that to report your findings.
Please remember for the class exercise you used the herf_cat as a hospital Herfindahl index. For this question make sure to use herf_ins as Herfindahl index for insurance market.
Use the final exam dataset and then answer the following questions:
- In a short paragraph explain the Herfindahl index you can use the reference provided in the class exercise or any other citation.
- Compare the following information between hospitals located in high, moderate and low competitive health insurance markets?
- 1. What are the main significant differences between hospitals in different markets? (use Anova test)
- 2. What is the impact of being in high-competitive health insurance market on hospital revenues and cost?
- 3. Do you think being in high-competitive market has positive impact on net hospital benefits?
- 4. What about the number of Medicare and Medicaid discharge? Do you think hospitals in higher completive market more likely to accept more Medicare and Medicaid patients?
- 5. What is the impact of other variables?
(Note: to answer to the last question, please compute the ratio-Medicare-discharge and ratio-Medicaid-discharge first and then run 2 ttest) high vs. moderate and high vs. low competitive market), please support your findings with box-plot).
Table 3. Comparing hospital characteristics and market
High Competitive Market | Moderate Competitive Market | Low Competitive Market | ANOVA/Chi-Sq (results) | |||||||
Hospital Characteristics | N | Mean | STD | N | Mean | STD | N | Mean | STD | |
1. Hospital beds | ||||||||||
2. Number of paid Employee | ||||||||||
3. Number of non-paid Employee | ||||||||||
4. Internes and Residents | ||||||||||
5. System Membership | ||||||||||
6. Total hospital cost | ||||||||||
7. Total hospital revenues | ||||||||||
8. Hospital net benefit | ||||||||||
9. Available Medicare days | ||||||||||
10. Available Medicaid days | ||||||||||
11. Total Hospital Discharge | ||||||||||
12. Medicare discharge-ratio | ||||||||||
13. Medicaid discharge-ratio | ||||||||||
Socio-Economic Variables | ||||||||||
14. Per Capita Hospital Beds to Population | ||||||||||
15. Median Household Income |
Question #4 (Credits 20)- [RStudio Users]
Linear Regression Model
If you have chosen to work with RStudio, please run the following model and complete the following tables.
1st Model:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital’s ownership on hospital net-benefit? Discuss your finding, do you think having higher beds has positive impact on the hospital net benefit? What about the ownership?Benefit=F(b0+B1bed+b2Own2+B3ow2+b4own3+e)
Model 1a | |||
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | Ref. | Ref. | Ref. |
Other | |||
N | Df+K+1 | ||
R-Squared |
2nd Model:
Now, estimate the impact of being a member of a system on hospital net benefit? And discuss your finding (not more than 2 lines)? Is it significant?
Model 2 | |||
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | |||
Other | |||
Membership | |||
System Membership | |||
N | |||
R-Squared |
3nd Model:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net benefit?
Model 3 | |||
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | |||
Other | |||
Membership | |||
System Membership | |||
Socio-Economic Characteristics | |||
Medicare discharge ratio | |||
Medicaid discharge ratio | |||
N | |||
R-Squared |
Based on your finding please recommend 3 policies to improve hospital performance, please make sure to use the final model for your recommendation.
Discuss your findings.
Question #4 (Credits 20)- [Excel Users]
Linear Regression Model
If you have chosen to work with Excel, please run the models and complete the following tables.
Model 1:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in teaching hospitals?Note: hospital-net-benefit=total_hosp_revenue-total_hosp_costY(benefit), B0+B1(beds)
Hospital Characteristics | Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% |
Model-1 | ||||||
Hospital beds | ||||||
N | ||||||
R Square |
Model 2:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in non-teaching hospitals?
Use the results from model 1 and model 2 and compare the results between teaching and non-teaching hospitals.
Hospital Characteristics | Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% |
Model-2 | ||||||
Hospital beds | ||||||
N | ||||||
R Square |
Model 3:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in first model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in teaching hospitals?
Hospital Characteristics | Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% |
Model-3 | ||||||
Hospital beds | ||||||
ratio-Medicare-discharge | ||||||
ratio-Medicaid-discharge | ||||||
N | ||||||
R Square |
Model 4:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in first model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in non-teaching hospitals?
Hospital Characteristics | Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% |
Model-4 | ||||||
Hospital beds | ||||||
ratio-Medicare-discharge | ||||||
ratio-Medicaid-discharge | ||||||
N | ||||||
R Square |
Based on your finding please recommend 3 policies to improve hospital performance, please make sure to use the final model for your recommendation.
Question #5 (Credits 20) [RStudio Users]
If you have chosen to work with RStudio, please run three models and complete the following tables.
Model 1: Run a logit model and use being a member of network and find out its impact on hospital beds and hospital ownership? (Model 1)
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | Ref. | ||
Other | |||
N | |||
AIC |
Model 2: Now, include hospital revenue and report the Coeff.? (Model 2)
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | Ref. | ||
Other | |||
Hospital revenue | |||
N | |||
AIC |
Model 3: Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model? And keep all variables you used for models 1, 2 & 3 and discuss your findings? Do you recommend keeping membership for a hospital? Why or why not? (Model 3)
Hospital Characteristics | Coef. | St. Err | p-value |
Hospital beds | |||
Ownership | |||
For Profit | |||
Non-for profit | Ref. | ||
Other | |||
Hospital revenue | |||
Medicare discharge ratio | |||
Medicaid discharge ratio | |||
N | |||
AIC |
Based on your finding please recommend 3 policies to improve hospital performance in hospitals, please make sure to use the final model for your recommendation.
Question #5 (Credits 20)- [Excel users]
If you have chosen to work with Excel, please run above three models and complete the following tables.
Model 1: Run a regression model and use being a member of network and find out its impact on hospital cost? (Model 1)
Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% | |
Model-1 | ||||||
Hospital cost | ||||||
N | ||||||
R Square |
Model 2: For the 2nd model run a regressionmodel and use being a member of network and find out its impact on hospital cost and hospital revenue? (Model 2)
Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% | |
Model-2 | ||||||
Hospital cost | ||||||
Hospital Revenue | ||||||
N | ||||||
R Square |
Model 3: For the 3rd model run a regressionmodel and use being a member of network and find out its impact on ratio-Medicare-discharge and ratio-Medicaid-discharge.
Coef. | ST. ERR | T Stat | P-values | Lower 95% | Upper 95% | |
Model-3 | ||||||
Hospital cost | ||||||
Hospital Revenue | ||||||
Medicare discharge ratio | ||||||
Medicaid discharge ratio | ||||||
N | ||||||
R Square |
Based on your finding please recommend 3 policies and discuss the impact of being on a network on hospital cost, hospital revenue and find out its impact on ratio-Medicare-discharge and ratio-Medicaid-discharge. Do you recommend keeping membership for a hospital? Why or why not?
Question 6: (15 credits) [RStudio Users and Excel Users]
Note: Please limit your answer for each question to maximum 2 paragraphs and make sure to support your findings with at least one citation – following APA 6.
- Please offer a research question for the study using human subject research.
- Explain the difference between the research process involving human subjects and the research process not involving human subjects.
- Discuss ethical implications surrounding human subject research studies.
- Explain the governance of the human subject research studies over the data and the process.
- Provide examples of the consequences for not meeting IRB (Institutional Review Board) protocol requirements.
Useful formula and guideline.
The computation of the p-value is illustrated in following figures.
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