Abstract
We develop a method to estimate the cumulative cost of health interventions over a specified duration while controlling for a mix of patient-specific variables using data of total cost and associated length of treatment. A two-equation model for total cost and duration of treatment is estimated with the endogeneity of the latter accounted for in the model for cost. As an illustrative example, we apply our method to hospital costs and length of stay of patients undergoing cardiac procedures. Our method is relevant to economic evaluations of interventions since it accounts for the differential impact of treatment duration on total cost, in addition to patient characteristics. Our method allows greater use of total costs data, typically found in hospital records and claim files, that has not been previously attempted.
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Gardiner, J.C., Luo, Z., Bradley, C.J. et al. Longitudinal Assessment of Cost in Health Care Interventions. Health Services & Outcomes Research Methodology 3, 149–168 (2002). https://doi.org/10.1023/A:1024264224760
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DOI: https://doi.org/10.1023/A:1024264224760