Exercise #4

Linear Regression Model

If you have chosen to work with RStudio, please run the following linear regression model and complete the following tables using dataset from week 1s exercise.

Medicare and Medicaid Discharge Ratios:

Medicare Discharges Total Hospital Discharges; Medicaid Discharges Total Hospital Discharges

1st Model:

Run a linear model to predict the impact of number of hospital beds (use the bed-tot) and hospitals ownership on hospital net-benefit. Discuss your finding. Do you think having higher r number of beds has a positive impact on the hospital net benefit? What about the ownership?

Hospital Characteristic	Coef	ST. Err	P Value
Hospital beds
Ownership
For-Profit
Not-for-profit
Other
N
R-Squared

(Limit all results to 2 decimal places max)

2nd Model:

Now, estimate the impact of being a member of a system on hospital net benefit. Discuss your finding (not more than 2 lines)? Is it significant?

Hospital Characteristic	Coef	ST. Err	P Value
Hospital beds
Ownership
For-Profit
Not-for-profit
Other
Membership
N
R-Squared

(Limit all results to 2 decimal places max)

3rd Model:

Now, include the Medicare and Medicaid discharge ratios in your model. How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital revenues?

Hospital Characteristic	Coef	ST. Err	P Value
Hospital beds
Ownership
For-Profit
Not-for-profit
Other
Membership
System Membership
Socio-Economic Characteristics
Medicare discharge ratio
Medicaid discharge ratio
N
R-Squared

(Limit all results to 2 decimal places max)

Based on your findings, recommend 3 policies to improve hospital performance. Please make sure to use the final model for your recommendations.