@techreport{NBERw15309, title = "Estimating Heterogeneity in the Benefits of Medical Treatment Intensity", author = "William N. Evans and Craig L. Garthwaite", institution = "National Bureau of Economic Research", type = "Working Paper", series = "Working Paper Series", number = "15309", year = "2009", month = "September", URL = "http://www.nber.org/papers/w15309", abstract = {Federal and state laws passed in the late 1990 increased considerably postpartum stays for newborns. Using all births in California over the 1995-2001 period, 2SLS estimates suggest that for the average newborn impacted by the law, increased treatment intensity had modest and statistically insignificant (p-value>0.05) impacts on readmission probabilities. Allowing the treatment effect to vary by pre-existing conditions or the pre-law propensity score of being discharged early, two objective measures of medical need, demonstrates that the law had large and statistically significant impacts for those with the greatest likelihood of a readmission. These results demonstrate heterogeneity in the returns to greater treatment intensity, and the returns to the average and marginal patient vary considerably.}, }