Wu constructed a couple of products to possess alterations in Medicare money: an excellent “BBA bite” (similar to Cutler’s “Medicare bite”) and you can a good 1996 proportion out of Medicare to non-Medicare discharges. eight The newest established adjustable are the alteration from the each-diligent non-Medicare speed, once more exactly like Cutler’s. Two types of designs were used, you to definitely with instrumented Medicare speed changes just like the secret independent varying in addition to other having instrumented Medicare revenue change given that secret independent varying. Almost every other separate variables provided a bargaining-electricity scale (the newest express regarding personal pay discharges reduced you to definitely having Medicare customers), 8 medical control method of, height and change during the HMO business entrance (and additionally instrumented), change in case mix, health occupancy speed, level and alter from inside the Medicaid-to-Medicare physicians’ commission proportion, share regarding for-money hospitals, and you may hospital markets amount.
