Should the US adopt global budgets for hospitals? Have some states done this already?

While I leave the answer to the first question for another day, the answer to the second question is ‘yes’. Done, Herring and Wu (2019) explain’s Maryland’s approach to global capitation payments for hospitals covering both inpatient and outpatient hospital services. Maryland is the only state that still operates an all‐payer rate‐setting system for hospitals,…

Peer effects: Does your perceptions about your peers matter more than your peers’ behavior?

It appears that not only does your friend’s behavior affect your behavior, but your perception of their behavior–independent from their actual behavior–affects your behavior. Want a concrete example of this? A paper by Amialchuk et al. (2019) finds the following: Using a nationally representative dataset, we estimate the effect of misperception about friends’ alcohol, smoking,…

Are open-source approaches to value measurement the wave of the future?

My colleagues Jeroen Jansen, Devin Incerti along with Jeff Curtis think so. In JMCP they write: In the United States, there is an increased interest to understand the value of health technologies. Cost-effectiveness analysis is arguably the most appropriate framework to quantify value and to inform reimbursement decision making regarding medical interventions; however, a thorough…

CBO: Healthcare projected to consume increasing share of federal outlays in next decade

Every year, the Congressional Budget Office projects how the federal budget will look over the coming decade. For the coming decade, the numbers look grim. Federal deficits in CBO’s baseline average $1.2 trillion per year and total $11.6 trillion over the 2020– 2029 period…Those deficits would average 4.4 percent of gross domestic product (GDP). Other…