A recent study published in Health Care Management Review suggests the healthcare reform law's individual mandate may lead to less productive use of hospital resources.
Proponents of the healthcare reform law argue the individual mandate would improve the overall health of the population, resulting in less need for hospital services and less chronic illness. Researchers tested this assumption by comparing data from Massachusetts hospitals and non-Massachusetts hospitals with similar characteristics from 2005 to 2008. The Massachusetts state government implemented universal insurance coverage in 2007.
The analysis showed Massachusetts hospitals suffered "a significant drop" in productivity compared to hospitals with comparable characteristics. Specifically, in 2008 Massachusetts hospitals demonstrated productivity levels 3.5 percent lower than its 2005 level, whereas other facilities in the country saw a 4 percent increase in the same three-year span.
The researchers found the costs of providing universal insurance in Massachusetts have been higher than expected. They also concluded the release of "pent-up demand" for healthcare services may contribute to the change in productivity.
Proponents of the healthcare reform law argue the individual mandate would improve the overall health of the population, resulting in less need for hospital services and less chronic illness. Researchers tested this assumption by comparing data from Massachusetts hospitals and non-Massachusetts hospitals with similar characteristics from 2005 to 2008. The Massachusetts state government implemented universal insurance coverage in 2007.
The analysis showed Massachusetts hospitals suffered "a significant drop" in productivity compared to hospitals with comparable characteristics. Specifically, in 2008 Massachusetts hospitals demonstrated productivity levels 3.5 percent lower than its 2005 level, whereas other facilities in the country saw a 4 percent increase in the same three-year span.
The researchers found the costs of providing universal insurance in Massachusetts have been higher than expected. They also concluded the release of "pent-up demand" for healthcare services may contribute to the change in productivity.
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