Question #1 Excel Users

The dataset provides some information about hospitals in 2011 and 2012, download the data and then complete the descriptive table. Please answer the following questions.

1. In term of hospital characters what are the significant difference between 2011 and 2012?
2. In terms 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)

1. 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 and Excel Users

Use the dataset and then answer the following questions:

1. Compare the following information between for-profit and non-for-profit hospitals.
2. What are the main significant differences between for-profit and non-for-profit hospitals? Which test is the best fit test? Why?
3. Use a box-plot and compare Hospital net benefit between for-profit and non-for-profit hospitals.
4. Show another scatter plot and compare hospital cost (x-axes) and revenue (y-axes) and discuss your findings?
5. 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.
6. 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 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:

1. In a short paragraph explain the Herfindahl index you can use the reference provided in the class exercise or any other citation.
2. Compare the following information between hospitals located in high, moderate and low competitive health insurance markets?
   • 2.1. What are the main significant differences between hospitals in different markets? (use Anova test)
   • 2.2. What is the impact of being in high-competitive health insurance market on hospital revenues and cost?
   • 2.3. Do you think being in high-competitive market has positive impact on net hospital benefits?
   • 2.4. 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?
   • 2.5. 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

Computation of the p-Value for the Two-Sample t Test for Independent Samples with Equal Variances Compute the test statistic: X1 - X2 1= 1 1 S + n2 where s= (n, - 1)$7 + (n2 - 1)$3](m, + 12 - 2) If t s 0, p = 2 x (area to the left of t under a t, +n, -2 distribution). If t > 0, p = 2 x (area to the right of t under a t, +n, -2 distribution).Computation of the p-value for the two-sample t test for independent samples with equal variances 0.4 0.3 (m +m-2 distribution Frequency 0.2 0.1- P/2 0.0 t 0 Value If t = (71 - $2)/s n2 SO, then p = 2 x (area to the left of t under a t, + 2-2 distribution). 0.4 (m + 2-2 distribution 0.3 Frequency 0.2 0.1 P/2 0.0 0 t Value If t = (7 1 - $2) / 5 7 12 1 + 1\\> 0, then p = 2 x (area to the right of t under a to + 2-2 distribution)