Exercise #3

1 Exercise #3 Brittany Felton University of Maryland Global Campus HMGT 400: Research and Data Analysis in Healthcare Dr. Hossein Zare November 7, 2023

2 Exercise #3 Table 3. Comparing hospital characteristics and market, 2011 and 2012 High Competitive Market Moderate Competitive Market Low Competitive Market ANOVA/ Chi-Sq (results) Hospital Characteri stics N Mean STD N Mean STD N Mean STD 1. Hospital beds 219 130.9 386.2 1333 420.5 594.2 1479 373.6 562.2 0.1164 2. Number of paid Employee 219 500 813 1324 1570 1955 1470 1309 1722 0.08189 3. Number of non-paid Employees 0 NA NA 25 35.9 30.5 35 47 97.1 0.5826 4. Interns and Residents 22 38.3 45.6 423 112 176 480 86.6 150 0.1579 5. System Membership 219 0.425 0.495 1332 0.607 0.0489 1479 0.632 0.483 0.00 6. Total hospital cost 219 73700 000.00 121000 000.00 1332 2.56e 342000 000.00 1479 20100000 0.00 26700000 0.00 0.3623 7. Total 219 17.5 1.03 1332 18.7 1.46 1479 18.4 1.63 0.3126

4 1. Compare the following information between hospitals located in high, moderate and low competitive markets? (table 1) Refer to the table above 2. What are the main significant differences between hospitals in different markets? (use ANOVA test) The most notable variations are the overall number of hospital discharges, the net benefit of hospitals, and the number of hospital beds. 3. Use the density curves and compare hospitals cost and revenues between three markets. The market's cost and revenue are in equilibrium.The cost-to-revenue ratio initially increases to some extent, but thereafter reaches a stable level. 4. What is the impact of being in a high-competitive market on hospital revenues and cost? Do you think being in a high-competitive market has a positive impact on net hospital benefits? What about the number of Medicare and Medicaid discharge? Do you think hospitals in a higher completive market more likely to accept more Medicare and Medicaid patients? What is the impact of other variables? Please discuss your findings in 1-2 paragraphs . The income is not significantly higher despite the fact that the costs are higher in a highly competitive market. The moderate market has the highest income but the second-lowest average costs. Therefore, an urgent care center in a highly concentrated market has a bigger net advantage than in less concentrated markets. Patients on Medicare and Medicaid were less likely to be discharged from hospitals in the highly competitive market. They also have significantly

5 fewer available beds than the other two marketplaces. Based on this data, I conclude that the high-focus market has a smaller population but more favorable medical clinic advantages. Their expenses are far higher than those of the other two markets, but their profits are only somewhat lower.