Exercise #4
Linear Regression Model If you have chosen to work with RStudio, please run the following model and complete the following tables.
1st Model:
Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital’s ownership on hospital net-benefit? Discuss your finding, do you think having higher beds has positive impact on the hospital net benefit? What about the ownership?
Model 1a
Hospital Characteristics
Coef. St. Err
Hospital beds
11276
1318
Ownership
For Profit
-2284
1949
Non-for profit
-3611
2318
Other
-3705
1799
N
0.06
R-Squared
0.06547
Hospital beds 0.15 0.12 Ownership For Profit = 1 -0.30 0.19 Non-for-profit = 0 N/A N/A Other = 3 -0.48 0.17 N 3030 R-Squared 0.05 Model 1a Hospital Characteristics Coef. St. Err. I believe that the overall benefit of the hospital is significantly impacted by the total amount of beds available. Improved patient
care is provided when there are more people in hospital beds. The hospital's overall advantage was negatively impacted by management and the medical center, as the facts suggest. 2nd Model:
Now, estimate the impact of being a member of a system on hospital net benefit? And discuss your finding (nor more than 2 lines)? Is it significant? Model 2
Hospital Characteristics
Coef. St. Err
Hospital beds
Ownership
For Profit
Non-for profit
Other
Membership
System Membership
N
R-Squared
3nd Model:
Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model?
How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital revenues?
Model 3
Hospital Characteristics
Coef. St. Err
Hospital beds
Ownership
For Profit
Non-for profit
Other
Membership
System Membership
Socio-Economic Characteristics
Medicare discharge ratio
Medicaid discharge ratio
N
R-Squared
