Accounting for Health and Health Care: Approaches to Measuring the Sources and Costs of their Improvement by National Research Council of the National Academies

Author:National Research Council of the National Academies
Language: eng
Format: epub
Tags: Health and Medicine : Healthcare and Quality
Publisher: NATIONAL ACADEMIES PRESS
Published: 2011-01-05T00:00:00+00:00

4.3.2.

Quality Change Adjustments for Improved Treatments

It is generally accepted, both in the price index literature and in medical economics,11 that price indexes need to be adjusted to reflect improved medical treatments or (as it is usually called in the price index literature) quality change. Fisher and Shell (1972) and Triplett (1983) show that the appropriate way to make a quality adjustment in an index of output (or in the output price index) when markets are competitive is by the cost difference between the older and the improved treatments. BLS uses the change in cost as a quality adjustment when changed treatments are encountered in the PPI hospital index. An example has already been given in section 4.2.

11See the instructive analysis from the medical economics side by Phelps (1999, pp. 108-117).

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.