Background and Methods We studied the effects of admission toa teaching hospital on the cost and quality of care for patientscovered by Medicare (age, 65 years old or older). We used datafrom the National Long Term Care Survey and merged them withMedicare claims data. We selected the first hospitalizationfor hip fracture (802 patients), stroke (793), coronary heartdisease (1007), or congestive heart failure (604) occurringbetween January 1, 1984, and December 31, 1994, and calculatedall Medicare payments for inpatient and outpatient care duringthe six-month period after admission. Survival was assessedthrough 1995. Hospitals were classified as major or minor teachinghospitals (with minor hospitals defined as those in which thenumber of residents per bed was less than the median numberfor all teaching hospitals) or as private nonprofit, government(i.e., public), or private for-profit hospitals.
Results Medicare payments for the six-month period after hospitalizationwere highest for patients initially admitted to teaching hospitalsfor the treatment of hip fracture, stroke, or coronary heartdisease and for patients initially admitted to for-profit hospitalsfor the treatment of congestive heart failure. As compared withpayments to for-profit hospitals, payments to major teachinghospitals for hip fracture were significantly higher, paymentsto government hospitals for coronary heart disease were lower,and payments to government and nonprofit hospitals for congestiveheart failure were lower. After adjustment for patients' characteristicsand social subsidies, major teaching hospitals had the lowestmortality rates (hazard ratio for death, 0.75, as compared withfor-profit hospitals; 95 percent confidence interval, 0.62 to0.91). For individual conditions, the only significant survivaladvantage associated with admission to major teaching hospitalswas for hip fractures (hazard ratio, 0.54, as compared withfor-profit hospitals; 95 percent confidence interval, 0.37 to0.79).
Conclusions Although admission to a major teaching hospitalmay be associated with increased costs to the Medicare program,overall survival for patients with the common conditions westudied was better at these hospitals, especially for patientswith hip fractures.
Source Information
From the Center for Health Policy, Law, and Management, Terry Sanford Institute of Public Policy (D.H.T., F.A.S.), the Department of Medicine, Division of Cardiology (D.J.W.), and the Department of Economics (F.A.S.), Duke University, Durham, N.C.
Address reprint requests to Dr. Taylor at the Center for Health Policy, Law, and Management, Box 90253, 122 Old Chemistry Bldg., Duke University, Durham, NC 27708, or at dtaylor{at}hpolicy.duke.edu.
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