Popular in Professional

Human Rights Law

Human Rights and Corruption: Problems and Potential of Individualising a Systemic Problem

Max Planck Institute Anne Peters

Law

A statistical approach to law school citation rankings

University of Virginia Joshua Fischman

Education

High school change

Boston College Andrew Hargreaves

Constitutional Law

What is constitutional ideology?

University of Oxford Nick Barber

Civil Procedure Law

Politics, Identity, and Class Certification on the U.S. Courts of Appeals

University of Pennsylvania Sean Farhang

Culture and Society

The City as a Growth Machine: Toward a Political Economy of Place

New York University Harvey Moltoch

Education

The Role of Education in Reducing Racial Inequality

University of Southern California Pedro A. Noguera

Direct and Spillover Effects of Quality Disclosure Regulation: Evidence from California Hospitals

View more insights in Professional - Business - Operational Research

View more figures from Georgetown University

View the page of Aishwarrya Deore

Read the Study

Next in Business

Teaching Democracy and Capitalism

Robert Bruner | University of Virginia

Do Employees Cheer for Private Equity?

Oleg Gredil | Tulane University

Do quality disclosure regulations in healthcare genuinely improve patient outcomes, or are the benefits more significant for ailments they aren’t even targeting?

Image courtesy of interviewee. November 20, 2024

Log-in or Sign-up to Faculti
Currently viewing this subject insight as a guest. You have insight(s) remaining for this month. Login to view 8000+ figures on the platform.

Generating Workspace...

Export as PDF

This video discusses a study examining the impact of quality disclosure regulations on healthcare in California, focusing on hospitals and mortality rates for certain ailments. Over the last few decades, there has been a push for increased information transparency in the healthcare sector. The researchers aimed to assess whether these regulations, which target specific ailments, had a meaningful effect on patient outcomes.

The study analyzed changes in mortality rates for ailments directly affected by the regulations compared to those that were not. The findings indicated that improvements in treatment for disclosed ailments, like heart attacks, also benefited related conditions, such as angina, due to shared resources and treatment efforts—a phenomenon referred to as spillover effects.

Furthermore, the research highlighted a shift in consumer behavior, noting that patients began choosing hospitals based on the new, accessible quality information. This video resulted in improved market share for hospitals with better outcomes for the targeted ailments.

Significantly, the study concludes that such healthcare regulations not only enhance care for the targeted ailments but also bring broader benefits across related areas, suggesting that even limited regulatory efforts can produce extensive positive spillover effects. The implications extend beyond healthcare, with parallels identified in other industries, such as automotive and aviation, where targeted regulations can lead to improvements in unregulated areas as well. The study advocates for continued research into these spillover effects and the broader implications of regulation.

Language:

Export as PDF

Export as PDF
Here are five key points from the video:

1. **Regulatory Impact on Healthcare Quality**: The study focuses on the impact of quality disclosure regulations in California's healthcare sector, highlighting that these regulations have prompted hospitals to improve quality, which has significant implications for patient outcomes, particularly mortality rates for targeted ailments.

2. **Methodology – Treatment and Control Groups**: The research design utilized a treatment and control group approach within hospitals. By comparing mortality rates of ailments affected by the disclosure regulations to those that were not targeted but were medically related, the study aimed to isolate the impact of regulatory changes.

3. **Spillover Effects**: The concept of spillover effects is central to the findings. Improvements made in the treatment of disclosed ailments benefit related non-disclosed ailments due to shared resources (such as equipment and medical staff), suggesting that regulatory focus on specific ailments can have broader positive impacts on overall healthcare quality.

4. **Consumer Demand and Information Accessibility**: The study highlights a demand-side effect where consumers are more likely to consider mortality rates and choose hospitals based on the accessible information made available by regulatory changes. This increase in consumer awareness and choice enhances competitive pressure on hospitals to improve care quality.

5. **Broader Applications of Regulatory Benefits**: The findings suggest that the benefits of targeted regulations extend beyond the initial aims, indicating potential applications in other industries (e.g., automotive, airline) where similar spillover effects could occur. This underscores the importance of effective regulatory frameworks and their capacity to provoke improvements across a wide range of areas beyond the specific targeted interventions.

Export as PDF
Here are key quotes extracted from the video you , capturing essential points about the impact of regulatory changes in California's healthcare environment:

1. **Regulatory Impact**: “We wanted to study whether this regulatory changes actually have any impact.”

2. **Focus on California**: “Because of data availability concerns, we focused only on the California hospitals.”

3. **Targeted Ailments**: “This regulation targeted only a few ailments... we looked at whether the mortality rates of these targeted ailments changed relative to other ailments in the same hospital, but which were not affected by these regulations.”

4. **Controlled Study Design**: “It was a really tight treatment and control group... so there’s no reason apart from like the regulation that these ailments get affected and not the other ailments in the same hospitals.”

5. **Spillover Effects**: “We theorize arise from resource and effort sharing between disclosed or, as we say in the paper, medically related ailments.”

6. **Complimentary Tasks**: “The treatment of heart attack and angina share a lot of common resources.”

7. **User Accessibility of Information**: “Prior to this regulation, there were other regulations in place... but it was given in such a complicated manner that I don’t think anyone even bothered to look at it.”

8. **Consumer Awareness**: “The market share of disclosed ailments were not sensitive to mortality rates before the disclosure regulation. However, after the disclosure regulation, they were.”

9. **Broader Implications of Regulation**: “The regulation in the healthcare industry is beneficial. It is necessary... these benefits go beyond the scope of the regulation.”

10. **Cross-Industry Findings**: “Even if you target a few select ailments, the benefits can be much wider... this is not only limited to the healthcare industry.”

11. **Other Industry Examples**: “Auto safety regulation can target only certain models of cars... even the on-time performance of international flights improved.”

12. **Future Research Directions**: “There’s a lot of scope... to look at spillover effects... other outcomes apart from those targeted by this regulation change.”

These quotes highlight the main findings and implications of the study on healthcare regulation and its broader benefits.

Export as PDF
Here are some suggested articles that are similar in theme and convideo to the video, which discusses healthcare regulations, quality improvements, and spillover effects:

1. **The Impact of Hospital Quality Reporting on Patient Outcomes**
- This article examines how quality disclosure regulations have influenced patient outcomes in hospitals, focusing on the correlation between reported quality metrics and improvements in care.

2. **Quality Disclosure in Healthcare: A Review of Effectiveness**
- This review discusses the effectiveness of quality disclosure initiatives in healthcare, analyzing various studies and their findings on patient outcomes and healthcare decision-making.

3. **Spillover Effects of Quality Regulation in Healthcare: Evidence from Medicare**
- This research article investigates spillover effects in healthcare quality regulation, particularly in relation to Medicare policies, and how these may enhance care for non-targeted patient groups.

4. **Regulatory Impact on Healthcare Quality: Lessons from California**
- This article explores the regulatory environment in California's healthcare system, specifically focusing on the implications of quality regulations and their effects on hospital performance.

5. **Consumer Insights and Quality Measurement in Healthcare: What Matters to Patients?**
- This paper looks at how patients perceive quality measures in healthcare settings, evaluating whether accessible information influences their choices and healthcare provider preferences.

6. **The Broader Impacts of Quality and Safety Regulations in Healthcare Settings**
- This study discusses how regulations targeting specific health conditions can lead to improvements across various domains in healthcare delivery and patient safety.

7. **Evaluating the Effectiveness of Reporting Programs in Healthcare**
- This article reviews different reporting programs implemented to enhance healthcare quality and accountability, assessing their impact on hospital practices and patient outcomes.

8. **Cross-Industry Spillover Effects of Safety Regulations: What Healthcare Can Learn from Aviation**
- This paper examines how safety regulations in one industry, such as aviation, can inform practices in healthcare, focusing on the benefits of transparency and accountability.

9. **Policy Impacts on Healthcare Delivery: Exploring Regulatory Changes and Patient Outcomes**
- This article analyzes the impact of various healthcare policies on patient outcomes, looking into how regulatory changes can shape care delivery across different medical conditions.

10. **Linking Quality Improvement to Regulatory Compliance: Evidence from the Healthcare Sector**
- This research connects quality improvement initiatives within hospitals to compliance with regulatory standards, illustrating the impact on healthcare outcomes and operational practices.

These articles should provide a comprehensive view of the discussions surrounding healthcare regulation, quality disclosure practices, and the dynamics of spillover effects in patient care.

X-TIMESTAMP-MAP=LOCAL:00:00:00.000,MPEGTS:90000

1
00:00:00.015 --> 00:00:01.605
Study was the healthcare

2
00:00:01.905 --> 00:00:05.045
and the corresponding regulatory environment in California.

3
00:00:05.905 --> 00:00:09.925
And we found that the quality disclosure regulations

4
00:00:10.435 --> 00:00:12.245
have been very widely adopted

5
00:00:12.785 --> 00:00:15.165
in the US over the last couple decades, right?

6
00:00:15.165 --> 00:00:19.365
There's been a lot of push over, like from the nineties to,

7
00:00:19.745 --> 00:00:22.365
you know, kind of get, especially in the healthcare sector,

8
00:00:22.705 --> 00:00:24.565
to get more information out to the public.

9
00:00:25.105 --> 00:00:28.845
So we wanted to study whether this regulatory changes

10
00:00:29.565 --> 00:00:30.965
actually have any impact.

11
00:00:31.145 --> 00:00:32.605
So, and

12
00:00:32.605 --> 00:00:35.605
because of data availability, you know, concerns,

13
00:00:35.665 --> 00:00:38.445
we focused only on the California hospitals.

14
00:00:38.595 --> 00:00:41.485
What we did is this regulation, as

15
00:00:41.485 --> 00:00:42.725
with many other regulations,

16
00:00:43.085 --> 00:00:45.005
targeted only a few ailments, right?

17
00:00:45.465 --> 00:00:48.925
So we looked at whether the mortality rates

18
00:00:48.985 --> 00:00:52.685
of these targeted ailments changed relative

19
00:00:52.685 --> 00:00:55.805
to other ailments in the same hospital,

20
00:00:56.145 --> 00:00:59.485
but which were not affected by these regulations.

21
00:00:59.505 --> 00:01:02.645
So it was a really tight treatment and control group,

22
00:01:03.635 --> 00:01:05.975
and we wanted to make sure that we controlled

23
00:01:05.975 --> 00:01:08.535
for all the hospital level factors that could be, you know,

24
00:01:09.075 --> 00:01:11.855
affecting changes, you know, techno like the technology

25
00:01:11.855 --> 00:01:13.735
or the resources adopted by a hospital.

26
00:01:13.835 --> 00:01:15.735
And over time the technology changes.

27
00:01:16.075 --> 00:01:18.575
That's why we kept it at a, within hospital level.

28
00:01:18.955 --> 00:01:23.535
So there's no reason apart from like the regulation

29
00:01:23.965 --> 00:01:26.015
that these ailments get affected

30
00:01:26.195 --> 00:01:29.135
and not the other ailments in the same hospitals.

31
00:01:29.135 --> 00:01:33.055
Spillover effects we theorize arise from resource

32
00:01:33.075 --> 00:01:35.135
and effort sharing between disclosed

33
00:01:35.195 --> 00:01:38.735
and non-disclosed ailments, which are complimentary nature,

34
00:01:39.035 --> 00:01:41.775
or as we say in the paper, medically related, right?

35
00:01:41.945 --> 00:01:45.455
There is a whole theory in accounting on multitasking

36
00:01:45.455 --> 00:01:48.135
and complimentary task settings, which is used

37
00:01:48.135 --> 00:01:50.135
to motivate our research and spillover effects.

38
00:01:50.365 --> 00:01:53.015
Okay? So medically related,

39
00:01:53.165 --> 00:01:56.175
non-disclosed ailments are essentially those ailments which

40
00:01:56.175 --> 00:01:59.055
were not directly targeted by the regulation,

41
00:01:59.595 --> 00:02:02.775
but were housed in the same medical category

42
00:02:02.875 --> 00:02:05.855
or, you know, ICD code as the disclosed ailment.

43
00:02:06.075 --> 00:02:09.135
So for example, you know, heart attack was disclosed, right?

44
00:02:09.525 --> 00:02:12.215
This lies in the cardiovascular group, right?

45
00:02:12.835 --> 00:02:15.015
The, there are many other ailments which are housed

46
00:02:15.015 --> 00:02:16.055
in the cardiovascular group.

47
00:02:16.075 --> 00:02:19.415
For example, angina, which is not disclosed,

48
00:02:19.995 --> 00:02:22.175
but the treatment of heart attack

49
00:02:22.395 --> 00:02:25.095
and angina share a lot of common resources.

50
00:02:25.555 --> 00:02:28.575
For example, following the disclosure regulation,

51
00:02:28.665 --> 00:02:30.535
let's say the hospitals

52
00:02:31.055 --> 00:02:32.935
invested more resources into improving the

53
00:02:32.935 --> 00:02:34.095
treatment of heart attacks, right?

54
00:02:34.275 --> 00:02:35.815
So they bought newer machines,

55
00:02:35.815 --> 00:02:38.375
they hired new cardiac surgeons, all of that.

56
00:02:38.795 --> 00:02:41.295
Now, that will not only benefit heart attack,

57
00:02:41.435 --> 00:02:44.855
but will also benefit, for example, angina, right?

58
00:02:45.365 --> 00:02:48.215
Because the p the treat, the patients coming in

59
00:02:48.335 --> 00:02:50.455
with angina are getting treated in the same rooms.

60
00:02:50.455 --> 00:02:52.495
They're getting treated by the same machines,

61
00:02:52.495 --> 00:02:53.815
by the same doctors, right?

62
00:02:54.075 --> 00:02:58.535
So because of this complimentary nature of the disclosed and

63
00:02:58.535 --> 00:03:01.765
Nondisclosed medically related ailments, there is a lot

64
00:03:01.765 --> 00:03:03.845
of resource and effort sharing that happens.

65
00:03:04.665 --> 00:03:07.845
And therefore, even if the hospitals have very directed,

66
00:03:07.865 --> 00:03:08.965
you know, their efforts to,

67
00:03:08.985 --> 00:03:10.445
its improving the disclosed ailments,

68
00:03:10.745 --> 00:03:12.405
the improvements will spill over

69
00:03:12.625 --> 00:03:14.405
to the medically related ailments as well.

70
00:03:14.505 --> 00:03:17.525
One of the biggest questions we had is what is the demand,

71
00:03:17.945 --> 00:03:19.725
side effect, right?

72
00:03:19.905 --> 00:03:22.405
Do consumers actually even look at this information?

73
00:03:22.405 --> 00:03:24.525
Because actually prior to this regulation,

74
00:03:24.895 --> 00:03:28.045
there were other regulations in place wherein the hospitals

75
00:03:28.045 --> 00:03:29.485
also had to disclose, you know,

76
00:03:29.485 --> 00:03:30.725
their mortality rates and stuff.

77
00:03:30.725 --> 00:03:32.725
But it was given in such a complicated manner

78
00:03:32.725 --> 00:03:34.925
that I don't think anyone even bothered to look at it.

79
00:03:35.265 --> 00:03:37.805
But CMS made this really accessible

80
00:03:37.905 --> 00:03:39.685
and easy for the public, right?

81
00:03:39.865 --> 00:03:43.285
So what we find is that in the reregulation period,

82
00:03:43.665 --> 00:03:46.565
the market shares of the disclosed ailments, which is,

83
00:03:46.665 --> 00:03:50.085
you know, looking at how many patients were admitted to

84
00:03:50.085 --> 00:03:51.165
that disclosed ailment in

85
00:03:51.165 --> 00:03:53.365
that hospital relative to the entire county.

86
00:03:53.465 --> 00:03:57.885
So the market share of disclosed ailments were not sensitive

87
00:03:57.885 --> 00:04:00.525
to mortality rates before the disclosure regulation.

88
00:04:00.635 --> 00:04:03.725
However, after the disclosure regulation, they were,

89
00:04:04.145 --> 00:04:05.605
so these findings indicate

90
00:04:05.605 --> 00:04:07.805
that there is like a demand side pressure

91
00:04:07.805 --> 00:04:10.005
or a demand side effect of quality regulation,

92
00:04:10.105 --> 00:04:14.285
and that consumers are deliberately choosing

93
00:04:14.785 --> 00:04:16.205
better quality hospitals

94
00:04:16.205 --> 00:04:18.205
because now this information is available to them.

95
00:04:18.525 --> 00:04:21.005
I think the most pertinent implication is

96
00:04:21.005 --> 00:04:22.525
that the regulation in the healthcare

97
00:04:22.845 --> 00:04:24.245
industry is beneficial.

98
00:04:24.625 --> 00:04:25.925
It is necessary, right?

99
00:04:26.225 --> 00:04:28.845
And more important than that is that these benefits go

100
00:04:28.845 --> 00:04:31.125
beyond the scope of the regulation right?

101
00:04:31.465 --> 00:04:33.765
Now, obviously it is too expensive

102
00:04:33.785 --> 00:04:36.885
and fairly impossible for any regulatory body

103
00:04:36.885 --> 00:04:38.205
to regulate all ailments, right?

104
00:04:38.205 --> 00:04:39.925
You can't, you can't ask hospitals

105
00:04:39.925 --> 00:04:41.645
to disclose mortality rates of all ailments.

106
00:04:41.645 --> 00:04:42.645
There are millions of ailments.

107
00:04:43.305 --> 00:04:44.805
But what this shows is

108
00:04:44.805 --> 00:04:48.245
that even if you target a few select ailments,

109
00:04:49.025 --> 00:04:51.125
the benefits can be much wider.

110
00:04:51.225 --> 00:04:54.005
It can spill over to other sections in the hospital.

111
00:04:54.745 --> 00:04:57.285
And we would like to think that this is not only limited

112
00:04:57.345 --> 00:04:58.605
to the healthcare industry, right?

113
00:04:58.665 --> 00:05:01.445
For example, look at the automobile industry, right?

114
00:05:01.665 --> 00:05:05.085
So auto safety regulation can target only certain models

115
00:05:05.665 --> 00:05:08.725
of cars, and as long as it's within the same company,

116
00:05:09.145 --> 00:05:11.525
the benefits are going to spill over to other cars

117
00:05:11.525 --> 00:05:13.525
because it's too expensive for hospitals

118
00:05:13.525 --> 00:05:16.885
to have like a different treatment for just this model

119
00:05:16.885 --> 00:05:18.165
of a car or for this ailment,

120
00:05:18.165 --> 00:05:20.125
and then an entirely different supply

121
00:05:20.125 --> 00:05:21.285
chain and treatment for another.

122
00:05:22.025 --> 00:05:23.925
The same applies to like the FDA industry,

123
00:05:24.185 --> 00:05:26.365
the trans, the airline industry.

124
00:05:26.645 --> 00:05:28.525
Actually, there was a study done in

125
00:05:28.525 --> 00:05:29.605
the Department of Transportation.

126
00:05:29.875 --> 00:05:32.845
What they did is they made it, mandatory

127
00:05:32.865 --> 00:05:36.005
for the airlines to report the on-time performance

128
00:05:36.065 --> 00:05:37.895
of domestic flights, right?

129
00:05:37.955 --> 00:05:38.975
All the domestic flights.

130
00:05:39.035 --> 00:05:41.455
But what they found is that even the on-time performance,

131
00:05:41.455 --> 00:05:43.055
international flights improved.

132
00:05:43.755 --> 00:05:45.505
So that's a spillover effect, right?

133
00:05:45.505 --> 00:05:47.745
So I would like to think that our study shows

134
00:05:47.775 --> 00:05:51.265
that regulation can have much broader benefits

135
00:05:51.295 --> 00:05:52.665
than its intended impact.

136
00:05:53.065 --> 00:05:56.345
I think there's a lot of scope in, you know, the healthcare,

137
00:05:56.345 --> 00:06:00.565
especially area to look at spillover effects at.

138
00:06:00.705 --> 00:06:03.005
So we had a very broad kind of spillover effect.

139
00:06:03.105 --> 00:06:05.965
We just looked at medically related ailments, right?

140
00:06:06.265 --> 00:06:08.845
Uh, but given that,

141
00:06:08.845 --> 00:06:11.525
some people might just have better data on, you know,

142
00:06:12.125 --> 00:06:13.525
patients and patient level data,

143
00:06:13.595 --> 00:06:16.925
they can look at even more granular spillover effects.

144
00:06:17.505 --> 00:06:20.485
We can look at hospitals that belong to the same system.

145
00:06:20.985 --> 00:06:22.765
You know, there are systems of hospitals

146
00:06:22.825 --> 00:06:25.445
and whether this effect is kind

147
00:06:25.445 --> 00:06:26.845
of different in those markets.

148
00:06:27.225 --> 00:06:29.045
We ourselves have another paper

149
00:06:29.415 --> 00:06:31.725
where we looked at regulation, how,

150
00:06:31.905 --> 00:06:36.405
how healthcare regulation actually affected other, so

151
00:06:36.405 --> 00:06:39.565
for example, there was another regulation in 2010,

152
00:06:39.565 --> 00:06:41.725
the A CA act, which targeted readmission rates.

153
00:06:42.025 --> 00:06:44.725
And what we found is that not only readmission rates,

154
00:06:44.785 --> 00:06:47.245
but also the continuity of care rates improved.

155
00:06:47.465 --> 00:06:49.085
So it's not just about like, for example,

156
00:06:49.115 --> 00:06:51.365
this regulation targeted mortality rates, right?

157
00:06:51.745 --> 00:06:53.245
But what else benefited?

158
00:06:53.615 --> 00:06:55.085
Maybe the length of stay changed,

159
00:06:55.335 --> 00:06:58.485
maybe patient satisfaction changed, maybe the customer,

160
00:06:58.665 --> 00:07:00.045
you know, rating of the hospital.

161
00:07:00.225 --> 00:07:02.605
The other outcomes apart from that is targeted

162
00:07:03.025 --> 00:07:04.165
by this regulation change.

163
00:07:04.165 --> 00:07:05.765
There are many types of spillover effects.

164
00:07:06.025 --> 00:07:08.805
So we focused, obviously just on mortality rates,

165
00:07:08.985 --> 00:07:10.805
but of a different ailment, right?

166
00:07:11.185 --> 00:07:14.005
Uh, other papers could look at what about other outcomes

167
00:07:14.145 --> 00:07:16.645
of the same unit, other outcomes of related ail.

168
00:07:17.065 --> 00:07:19.485
And of course, across industries, you know, the,

169
00:07:19.985 --> 00:07:21.285
the potential is limitless.

170
00:07:21.285 --> 00:07:24.125
Like I just said. It applies to the pharmaceutical industry,

171
00:07:24.235 --> 00:07:26.965
airline industry, you know, regulation is pervasive.

Impact of Quality Disclosure Regulations in California Healthcare

00:00:00 - Study was the healthcare and the corresponding regulatory environment in California. And we found that the quality disclosure regulations have been very widely adopted in the US over the last couple decades, right? There's been a lot of push over, like from the nineties to, you know, kind of get, especially in the healthcare sector, to get more information out to the public. So we wanted to study whether this regulatory changes actually have any impact.

00:00:32 - because of data availability, you know, concerns, we focused only on the California hospitals. What we did is this regulation, as with many other regulations, targeted only a few ailments, right? So we looked at whether the mortality rates of these targeted ailments changed relative to other ailments in the same hospital, but which were not affected by these regulations. So it was a really tight treatment and control group,

00:01:05 - for all the hospital level factors that could be, you know, affecting changes, you know, techno like the technology or the resources adopted by a hospital. And over time the technology changes. That's why we kept it at a, within hospital level. So there's no reason apart from like the regulation that these ailments get affected and not the other ailments in the same hospitals. Spillover effects we theorize arise from resource and effort sharing between disclosed

Spillover Effects in Healthcare Regulations

00:01:39 - or as we say in the paper, medically related, right? There is a whole theory in accounting on multitasking and complimentary task settings, which is used to motivate our research and spillover effects. Okay? So medically related, non-disclosed ailments are essentially those ailments which were not directly targeted by the regulation, but were housed in the same medical category or, you know, ICD code as the disclosed ailment.

00:02:09 - This lies in the cardiovascular group, right? The, there are many other ailments which are housed in the cardiovascular group. For example, angina, which is not disclosed, but the treatment of heart attack and angina share a lot of common resources. For example, following the disclosure regulation, let's say the hospitals invested more resources into improving the treatment of heart attacks, right? So they bought newer machines, they hired new cardiac surgeons, all of that.

00:02:41 - but will also benefit, for example, angina, right? Because the p the treat, the patients coming in with angina are getting treated in the same rooms. They're getting treated by the same machines, by the same doctors, right? So because of this complimentary nature of the disclosed and Nondisclosed medically related ailments, there is a lot of resource and effort sharing that happens. And therefore, even if the hospitals have very directed, you know, their efforts to,

Demand Effects of Healthcare Quality Disclosure Regulations

00:03:10 - the improvements will spill over to the medically related ailments as well. One of the biggest questions we had is what is the demand, side effect, right? Do consumers actually even look at this information? Because actually prior to this regulation, there were other regulations in place wherein the hospitals also had to disclose, you know, their mortality rates and stuff. But it was given in such a complicated manner that I don't think anyone even bothered to look at it. But CMS made this really accessible and easy for the public, right?

00:03:43 - the market shares of the disclosed ailments, which is, you know, looking at how many patients were admitted to that disclosed ailment in that hospital relative to the entire county. So the market share of disclosed ailments were not sensitive to mortality rates before the disclosure regulation. However, after the disclosure regulation, they were, so these findings indicate that there is like a demand side pressure or a demand side effect of quality regulation,

00:04:14 - better quality hospitals because now this information is available to them. I think the most pertinent implication is that the regulation in the healthcare industry is beneficial. It is necessary, right? And more important than that is that these benefits go beyond the scope of the regulation right? Now, obviously it is too expensive and fairly impossible for any regulatory body to regulate all ailments, right? You can't, you can't ask hospitals to disclose mortality rates of all ailments.

Broader Benefits of Targeted Regulation

00:04:43 - But what this shows is that even if you target a few select ailments, the benefits can be much wider. It can spill over to other sections in the hospital. And we would like to think that this is not only limited to the healthcare industry, right? For example, look at the automobile industry, right? So auto safety regulation can target only certain models of cars, and as long as it's within the same company, the benefits are going to spill over to other cars because it's too expensive for hospitals

00:05:16 - of a car or for this ailment, and then an entirely different supply chain and treatment for another. The same applies to like the FDA industry, the trans, the airline industry. Actually, there was a study done in the Department of Transportation. What they did is they made it, mandatory for the airlines to report the on-time performance of domestic flights, right? All the domestic flights. But what they found is that even the on-time performance, international flights improved.

00:05:45 - So I would like to think that our study shows that regulation can have much broader benefits than its intended impact. I think there's a lot of scope in, you know, the healthcare, especially area to look at spillover effects at. So we had a very broad kind of spillover effect. We just looked at medically related ailments, right? but given that, some people might just have better data on, you know, patients and patient level data, they can look at even more granular spillover effects.

Exploring Spillover Effects of Healthcare Regulations

00:06:20 - You know, there are systems of hospitals and whether this effect is kind of different in those markets. We ourselves have another paper where we looked at regulation, how, how healthcare regulation actually affected other, so for example, there was another regulation in 2010, the A CA act, which targeted readmission rates. And what we found is that not only readmission rates, but also the continuity of care rates improved. So it's not just about like, for example,

00:06:51 - But what else benefited? Maybe the length of stay changed, maybe patient satisfaction changed, maybe the customer, you know, rating of the hospital. The other outcomes apart from that is targeted by this regulation change. There are many types of spillover effects. So we focused, obviously just on mortality rates, but of a different ailment, right? other papers could look at what about other outcomes of the same unit, other outcomes of related ail. And of course, across industries, you know, the,

00:07:24 - Like I just said. It applies to the pharmaceutical industry, airline industry, you know, regulation is pervasive.

Faculti AI can make mistakes

Faculti

Popular in Professional

Human Rights and Corruption: Problems and Potential of Individualising a Systemic Problem

A statistical approach to law school citation rankings

High school change

What is constitutional ideology?

Politics, Identity, and Class Certification on the U.S. Courts of Appeals

The City as a Growth Machine: Toward a Political Economy of Place

The Role of Education in Reducing Racial Inequality

Direct and Spillover Effects of Quality Disclosure Regulation: Evidence from California Hospitals

Next in Business

Guide

Platform and Category Pages

Contact Us

FAQs

What is Faculti?

How do you select interviews?

Interview Process

Page Structure

Popular in Professional

Guide

Platform and Category Pages

Contact Us

FAQs

What is Faculti?

How do you select interviews?

Interview Process

Accessibility Options

Contrast Adjustment

Text Size Adjustment

Text Spacing Adjustment

Line Height Adjustment

Cursor Size Adjustment

Page Structure Options

Page Structure