Article

Is fragmented financing bad for your health?

Health Care Financing and Economics, U.S. Department of Veterans Affairs, 150 South Huntington Ave. (152H), Boston, MA 02130, USA.
Inquiry: a journal of medical care organization, provision and financing (Impact Factor: 0.56). 07/2011; 48(2):109-22. DOI: 10.2307/23035407
Source: PubMed

ABSTRACT Americans finance health care through a variety of private insurance plans and public programs. This organizational fragmentation could threaten continuity of care and adversely affect outcomes. Using a large sample of veterans who were eligible for mixtures of Veterans Health Administration- and Medicare-financed care, we estimate a system of equations to account for simultaneity in the determination of financing configuration and the probability of hospitalization for an ambulatory care sensitive condition. We find that a change of one standard deviation in financing fragmentation increases the risk of an adverse outcome by one-fifth.

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