The second topic is an analysis of managed care, particularly its role in Medicare and Medicaid hospitalizations. Much prior research indicates that HMO patients typically experience shorter lengths of stay in the hospital than those covered by other forms of health insurance, all else equal. Much of that work may suffer from bias resulting from a failure to account for the endogenaity of HMO status among the patients studied. Data from the state of Florida indicate that the apparent effects of HMOs on hospitalization episodes diminishes when the endogenaity of HMO status is accounted for.
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