A two-stage estimation of hospital quality using mortality outcome measures: An application using hospital administrative data

Chew Lian Chua, Alfons Palangkaraya, Jongsay Yong

Research output: Journal PublicationArticlepeer-review

7 Citations (Scopus)

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 quality estimates be associated with hospital characteristics. 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 case-load volume.

Original languageEnglish
Pages (from-to)1404-1424
Number of pages21
JournalHealth Economics (United Kingdom)
Volume19
Issue number12
DOIs
Publication statusPublished - Dec 2010
Externally publishedYes

Keywords

  • aggregating mortality outcomes
  • hospital quality
  • risk-adjusted mortality

ASJC Scopus subject areas

  • Health Policy

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