We study ethnic differences and discrimination in health care testing out a method from labor economics, but new to health economics, for decomposing the sources of racial/ethnic differences in health care use. The data in this paper are five years of Medicaid discharges in Massachusetts in four disease areas for three main ethnic groups: Blacks, Latinos and Whites. Our study uses data from the discharge (including severity measures and procedures), the hospital, and the area of a person's residence. We use these control variables, along with ethnicity, to propose, with a theoretical framework, a method for decomposing differences in health care use among these three groups. The main components consist of i) demand side variables, such as differences in investment in health and education; ii) tastes; iii) supply side variables, such as enrollment in managed care plans, hospital choice and trends in lower resource use; and iv) discrimination. We are particularly interested in trying to see whether ethnic differences in hospital resource use, measured by hospital cost, are due to enrollment in more the stringent managed care plans or if managed care is reducing treatment relatively more to the ethnic minorities.
Learning Objectives: At the conclusion of the session, the participant (learner) in this session will be able to: Identify possible sources of ethnic differences in health care
Keywords: Health Care, Ethnic Minorities
Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.