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2021 (4)

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Impact of Healthcare IT on Clinical Quality, Productivity and Workers
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Year: 2021 Publisher: National Bureau of Economic Research

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Impact of a Private Supplement to Public Health Care
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Year: 2021 Publisher: National Bureau of Economic Research

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The Impact of a Private Supplement to Public Health Care : The Mexico Diabetes Experiment
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Year: 2021 Publisher: Cambridge, Mass. National Bureau of Economic Research

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There are ongoing debates around the world over the value of private supplements to public health insurance systems. We investigate this issue in the context of one of the world's deadliest diseases, diabetes, and one of the countries with the worst diabetes problems in the world, Mexico. We implement a novel deniers randomization approach to cost-effectively provide a causal estimate of enrollment in private supplement to the free public health system. Our final sample of more than 1000 diabetics randomized into a large price subsidy for enrollment in the private plan is well balanced. We estimate enormous impacts of the private supplement, with HbA1c blood sugar levels falling by a full point (relative to a control mean of 8.5%), and to increase the share of those treated who are under control by 69%. We show that this effect arises through both improved treatment compliance and health behaviors, and that diabetes complications fall even in the short run. The net costs of this intervention are at most one-third of the gross costs due to offsetting public sector savings, and the health benefits are many multiples of gross costs. But the returns to private care do not appear to reflect more productive delivery of care per visit, which is comparable in a separate quasi-experimental analysis of public insurance; rather, effects arise through more attachment to medical care in the private alternative.

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Book
The Impact of Healthcare IT on Clinical Quality, Productivity and Workers
Authors: --- --- ---
Year: 2021 Publisher: Cambridge, Mass. National Bureau of Economic Research

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Adoption of health information and communication technologies ("HICT") has surged over the past two decades. We survey the medical and economic literature on HICT adoption and its impact on clinical outcomes, productivity and labor. We find that HICT improves clinical outcomes and lowers healthcare costs, but (i) the effects are modest so far, (ii) it takes time for these effects to materialize, and (iii) there is much variation in the impact. More evidence on the causal effects of HICT on productivity is needed to guide further adoption. There is little econometric work directly investigating the impact of HICT on labor, but what there is suggests no substantial negative effects on employment and earnings. Overall, while healthcare is "exceptional" in many ways, we are struck by the similarities to the wider findings on ICT and productivity stressing the importance of complementary factors (e.g. management and skills) in determining HICT impacts.

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