Healthcare Analytics in Action

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1 Healthcare Analytics in Action Joseph Doyle Erwin H. Schell Associate Professor of Management Professor of Applied Economics #MITSloanHI MARCH 13, ON THE PARK NEW YORK, NY

2 Healthcare Analytics in Action Measuring "Returns to Healthcare" Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Returns to Healthcare Using Data to Drive Innovation RCTs "Natural Experiments" Doyle (MIT Sloan) Experiments in Healthcare Delivery

3 Source: UC Santa Cruz, Atlas of Global Inequality

4 Source: connexica.c

5

6

7 Mortality vs. Hospital Cost: Heart Emergenices in FLA ( ) Mortality $

8 Healthcare Analytics in Action Randomized Controlled Trials Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Instantly credible as causal ) Impact Healthcare Intervention Research: 80% randomized Healthcare Intervention Research: 20% randomized Doyle (MIT Sloan) Experiments in Healthcare Delivery

9 Hot Spotting

10

11 Healthcare Analytics in Action Natural Experiments Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Mimic RCTs Using Naturally Occurring "Randomization" Today: Diagnostic Thresholds & Ambulance Assignment Doyle (MIT Sloan) Experiments in Healthcare Delivery

12 Healthcare Analytics in Action Natural Experiments Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Returns to Healthcare: Very-Low Birthweight Newborns Doyle (MIT Sloan) Experiments in Healthcare Delivery

13 Hospital Charges (2006$) Birth weight (grams)

14 Length of Stay Birth weight (grams)

15 One-Year Mortality Near Very Low BirthweightThreshold i h h h Birth weight (grams)

16 Healthcare Analytics in Action Natural Experiments Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Returns to Healthcare: Postpartum Stays Doyle (MIT Sloan) Experiments in Healthcare Delivery

17 1.9 Postpartum Length of Stay: Additional Midnights, by Minute of Birth

18 Postpartum Length of Stay: 1 or More Additional Midnights, By Minute of Birth

19 7-Day Readmission Rate, by Minute of Birth Around Midnight

20 Healthcare Analytics in Action Natural Experiments Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Returns to Healthcare: Does Hospital Choice Matter? Doyle (MIT Sloan) Experiments in Healthcare Delivery

21 Destination of Patients Picked Up In The Bellevue Hospital Zip Code Area Destination All Voluntary Hospital Ambulances Fire Department Ambulances Bellevue Hospital (HHC) 25%* 61%** Any Voluntary Hospital 75% 39% *157 taken to Bellevue/632 total. **815 taken to Bellevue/1,346 total

22 8.95 Figure 2a: First Stage Hospital log(cost) vs. Ambulance Co's Hospital log (Cost) Hosp pital log(c Cost) Ambulance Company: Hospital log (Cost)

23 0.44 Figure 2b: Mortality-Hospital Cost Relationship 1-ye ear Mortali ity E(Hospital Cost Z)

24 0.46 Figure A1b: Mortality-Hospital Procedures Relationship yea ar Mortalit ty E(Hospital Number of Procedures Z)

25 Summary Healthcare Analytics in Action Introduction RCTs in Healthcare Delivery Natural Experiments Conclusions Returns to Healthcare Using Data to Drive Innovation Correlations as warning signals Getting to Causality with: 1 RCTs 2 Natural Experiments Doyle (MIT Sloan) Experiments in Healthcare Delivery

26

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