Mark D. Agee

Parental and social valuations of child health information

Abstract We construct an endogenous risk model of the influence of more precise hazard information on the parental demand for child health. A 256-observation data set is used to estimate the marginal value to parents and to society of risk information about the future consequences of childrens body lead burdens. Our results indicate that the social value of risk information greatly exceeds the cost of providing it and that parents will purchase too little of this information.

Reducing child malnutrition in Nigeria: Combined effects of income growth and provision of information about mothers' access to health care services

Using a sample of 1359 Nigerian households from the 2003 Demographic and Health Surveys, this article investigates the contribution of improved maternal information about access to community health services toward the reduction of child stunting and undernourishment. The analysis shows that family wealth and region-specific knowledge about community health care access positively affects child nutrition status measured by height-for-age and weight-for-age. However, these nutrition gains can be reinforced or tempered by differences in mothers education and/or her access to community health services. These findings suggest that interventions which enhance public knowledge about availability and access to health care could strengthen more general development-oriented child nutrition-enhancing interventions, such as poverty reduction or growth in health services infrastructure.

Economies, Human Capital, and Natural Assets

Human capital concerns are used to structure links between the economy and the environment. Suggestions for empirical work to explore these structures are provided. Particular attention is devoted to connections between environmental hazards and influences upon parents’ decisions to invest in forming childrens human capital.

Directional heterogeneity of environmental disamenities: the impact of crematory operations on adjacent residential values

A hedonic study of residential house sales in Rawlins, Wyoming, was conducted to estimate the impact of an environmental shock from a new point source upon adjacent residential property values. We use a unique data base of house sale prices and associated house attributes, including structural and neighbourhood characteristics and geographic distances and directions from the source of the shock, atmospheric emissions from a new crematory. Our data spans 27 months of house sales: 7 months before, and 20 months after the startup of crematory operations. Results indicate that proximity, measured both in terms of direction and distance from the crematory, imparts a statistically significant negative impact on average house sale prices–an increase of 0.3 to 3.6% of average sale price for every one-tenth mile increase up to one-half mile in distance away from the crematory, but depending on direction from the crematory. This distance benefit increases somewhat with calendar time only for houses located west of the crematory.

Lessons from Game Theory about Healthcare System Price Inflation

BackgroundGame theory is useful for identifying conditions under which individual stakeholders in a collective action problem interact in ways that are more cooperative and in the best interest of the collective. The literature applying game theory to healthcare markets predicts that when providers set prices for services autonomously and in a noncooperative fashion, the market will be susceptible to ongoing price inflation.ObjectivesWe compare the traditional fee-for-service pricing framework with an alternative framework involving modified doctor, hospital and insurer pricing and incentive strategies. While the fee-for-service framework generally allows providers to set prices autonomously, the alternative framework constrains providers to interact more cooperatively.MethodsWe use community-level provider and insurer data to compare provider and insurer costs and patient wellness under the traditional and modified pricing frameworks. The alternative pricing framework assumes (i) providers agree to manage all outpatient claims; (ii) the insurer agrees to manage all inpatient clams; and (iii) insurance premiums are tied to patients’ healthy behaviours.Results and ConclusionsConsistent with game theory predictions, the more cooperative alternative pricing framework benefits all parties by producing substantially lower administrative costs along with higher profit margins for the providers and the insurer. With insurance premiums tied to consumers’ risk-reducing behaviours, the cost of insurance likewise decreases for both the consumer and the insurer.

The Impact of an Insurance Administration–Free Primary Care Office on Hospital Admissions A Community-Level Comparison With Traditional Fee-for-Service Family Practice Groups

This study compares hospital admissions over a 3-year period (2009-2011) between a community’s 2 major private, fee-for-service physician groups and an insurance administration–free, hospital-affiliated clinic designed to provide a full array of primary care services to low-income individuals at little or no cost. We use data on patients’ chronic conditions and inpatient hospital admissions to compare patients’ average number of physician office visits and overall hospital admission rates per 1000 patients. The data indicate that while clinic patients have a higher (or equal) average number of chronic conditions compared with patients in the private physician groups, they exhibit lower hospital admission rates. Clinic patients also exhibit a higher average annual frequency of physician visits. Results of this study suggest that enhanced access to primary care could help mitigate inefficient use of non–urgent care hospital resources for the uninsured and reduce costly hospitalizations even in the short run.

Effect of Medical Nutrition Therapy for Patients With Type 2 Diabetes in a Low-/No-Cost Clinic: A Propensity Score–Matched Cohort Study

Background. Although many studies have been conducted regarding the effectiveness of medical nutrition therapy (MNT) for type 2 diabetes management, less is known about the effectiveness of MNT for low-income adults. This study evaluated the contribution of MNT in improving A1C and blood pressure in a population of low-income adults with type 2 diabetes. Methods. This was a population-based, propensity score–matched cohort study using provincial health data from Altoona, Blair County, Pa. Patients who had been diagnosed with type 2 diabetes for at least 6 months before March 2014 were selected from two separate clinics that serve low-income populations. Patients who received MNT (n = 81) from a registered dietitian were compared to a matched group of patients who received primary care alone (n = 143). Outcome measures were A1C and systolic and diastolic blood pressure. The follow-up period was 1 year. Results. Improvements in A1C and systolic and diastolic blood pressure were statistically significant for patients who received MNT at uniform 3-month intervals through 1 year. At the 1-year follow-up, A1C reduction was –0.8% (P <0.01), systolic blood pressure reduction was –8.2 mmHg (P <0.01), and diastolic blood pressure reduction was –4.3 mmHg (P <0.05). Conclusion. Although low-income individuals encounter a variety of barriers that reduce their capacity for success with and adherence to MNT, provision of nutrition therapy services by a registered dietitian experienced in addressing these barriers can be an effective addition to the existing medical components of type 2 diabetes care.

Cost-Effectiveness of a Low-Cost, Hospital-Based Primary Care Clinic

This study assesses the cost-effectiveness of an insurance administration-free, hospital-based clinic designed to provide a full array of primary care services to low-income individuals at little or no cost. In addition to low/no-cost visits, individuals have the option to purchase a low-cost health insurance plan similar to any traditional health plan (eg, prescriptions, primary care, specialty care, durable medical equipment, radiology, laboratory test results). We used 3 years of data (2009-2012) on emergency department (ED) visits and inpatient hospital admissions from clinic patients and patients at the community’s 2 largest private physician groups to assess the cost-effectiveness of the hospital-based clinic in terms of ED and inpatient admission costs avoided and financial sustainability of the low-cost insurance plan. Estimated annual savings in hospital inpatient and ED costs were approximately 1.4 million. Insurance plan data indicated sound fiscal sustainability with modest provider reimbursement growth and zero annual premium growth.