Impact Analysis for Health Care

I am trying to analyze the economic impact of health sectors in my state. For analysis, i have selected 6 different health care related sectors. Currently, there are 1.4 million people that are receiving medicaid services. Now, the state is planning to expand that number to 2 million people. In such a case, how can I perform an impact analysis for those additional 600,000 people? Which model do I need to run? How do you suggest me to analyze the data? Please advise. Thanks
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  • Hi Arun, Thank you for your post. To do this impact, you will need to have an estimate of the increase value of medicaid payments going to the various healthcare Sectors. If you don't have a split across the Sectors we can certainly help you with this, but you will need to have at least an expected value of payments injected into the system. This method may be somewhat of an overexaggeration, as some of the people now eligible for these payments may have been carrying some type of insurance or paid out of pocket for medical services prior to their receiving these benefits. While this is likely small, it is still something to note. f you are looking at this from the standpoint of an increase in Household Income, then I recommend using the Household Income Change Activity Type. This will give you the opportunity to specify the increased income amount. The payments to Households should already be net of commuters and won't have Labor Income taxes associated to it. If you are looking at it from this standpoint, you will need to know what Households are saving (in a dollar value) for not having to cover medical bills out of pocket. Thanks!
  • Hello There, First, thanks a lot for your reply. I am looking this as a state's point of view and trying to analyze what would be the additional economic impact of enrolling, say, additional 100 people. Like you suggested, if I calculate the total cost associated with these 100 additional people is about $ 5,00,0000 ($5,000 per person on average*100=$5,00,000), how should I carry out my analysis? How should I model this? I hope you understand my question. Please advise. Thanks.
  • Hi Arun, Thank you for the clarification. It sounds as if your impact is as you said, from the State's perspective on what the impact is on the health care industry if there were additional people enrolled. If this is the case, then you can do an Industry Change Activity. Depending on the specific data you have for Health Care, there are several different Health Care Sector options you can choose from. This is again based on your study and what specifically about health care you are looking to model. The difficult thing may be to determine how to split the payments into their respective industries/sectors, if this data is not available to you, since Medicaid dollars can be used for a variety of other common, specialty, diagnostic and long-term care payments. If you can’t find a specific break down of this for your study, check out this website, which shows spending by service, by state: This is in the 536 Sectoring Scheme (2013 and current): 437 - Insurance Carriers 478- Outpatient Care Services 475- Offices of Physicians 477- Offices of other health practitioners 480- Home Health Care Services 481- Other Ambulatory Health Care Services Your Input value for this type of analysis would be the $5,000,000 in the Industry Sales field. However, do be sure that before this value is entered, that you set the Event Year first. This is the year of this hypothetical impact would be occurring, or another way to say it would be the year of the value of the $5,000,000. This could be an overestimation because these households were likely spending in these industries anyways. Let us know if you have further questions.
  • This is great. I am learning a lot. Yes, I chose (as had been chosen earlier by someone in my office) 6 health care related sectors for analysis. I assumed for each sector the impact would be around $1,000,000. I set up my model as a single industry contribution analysis. For example, for the first sector, i.e.,, home health sector, I set up the industry sales to be $1,000,000 as a new event and analyzed the scenario. It gave me the result that showed the total employment effect is 20.8 (15.2 direct, 1.4 indirect and 4.1 induced). Similarly, it showed me the direct, indirect and induced effect for labor income, value added and output. Now, my question is: 1) Can I do the individual industry contribution analysis for these 6 sectors and add the results?? 2) Where can I find the place to enter the year? I assume this impact (without mentioning any year) included just the annual analysis. Please correct me if I am wrong. I hope to hear from you soon, as always. Thanks. Regards, Arun
  • Hi Arun! 1. You can look at the total impact of all 6 Health Sectors and looking at each Sector's impact individually. You can do this by creating 6 separate Activities, with each Event or health care sector in each Activity. Then when you create your Scenarios, you can create individual Scenarios for each Activity, so as to see the individual impacts. You can then create another Scenario that includes all Activities. This combined Scenario would give you a total of all 6 Health Care Sectors. 2. To view the Event Year in the Setup Activities Screen: Activity Options > Show > Show All. The Event Year is very important in setting the deflators and needs to be set to the year of the impact. The Dollar Year for View field is in the Results Screen. This field can be set to the year in which you wish to see the impact. This applies the inflation so that you are viewing the impact in the specific year's dollars.

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