Health Economics, Policy and Law .
ISSN/ISBN: Not available at this time. DOI: 10.1017/S174413312400015X
Abstract: We use Benford’s law to examine the non-random elements of health care costs. We find that as health care expenditures increase, the conformity to the expected distribution of naturally occurring numbers worsens, indicating a tendency towards inefficient treatment. Government insurers follow Benford’s law better than private insurers indicating more efficient treatment. Surprisingly, self-insured patients suffer the most from non-clinical cost factors. We suggest that cost saving efforts to reduce non-clinical expenses should be focused on more severe, costly encounters. Doing so focuses cost reduction efforts on less than 10% of encounters that constitute over 70% of dollars spent on health care treatment.
Bibtex:
@article{,
title={The inefficient effects of non-clinical factors on health care costs},
DOI={10.1017/S174413312400015X},
journal={Health Economics, Policy and Law},
author={McFarland, Shawn and Miller, Jonathan},
year={2024},
pages={1–15},
url = {https://www.cambridge.org/core/journals/health-economics-policy-and-law/article/inefficient-effects-of-nonclinical-factors-on-health-care-costs/4187FDA430D9666B520E3DC548343AA7},
}
Reference Type: Journal Article
Subject Area(s): Medical Sciences