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A team of researchers from George Mason University and the Urban Institute has found that Medicare beneficiaries who spend more on medical services tend to experience better overall health.
Wednesday, 01 June 2011 09:17

Greater medical spending is directly related to better patient outcomes, study findsA team of researchers from George Mason University and the Urban Institute has found that Medicare beneficiaries who spend more on medical services tend to experience better overall health. The group evaluated data from more than 17,000 seniors with Medicare insurance plans for their study, entitled "Medical Spending and the Health of the Elderly."

Previous research has suggested that Medicare spending often varies depending on where beneficiaries live. However, the team pointed out that individuals who live in expensive geographic areas do not always experience better outcomes than those in lower socioeconomic regions of the country.

Lead author Jack Hadley and his colleagues looked at information from the Medicare Current Beneficiary Survey, which compiled data from participants over a span of three years. They found that during this time period, every 10 percent increase in medical spending resulted in a 1.9 percent increase in the patient's health score.

"The key thing is that we did find a positive relationship as opposed to other studies, which have suggested that there's no relationship between how much care a person receives and what their health outcomes are," Hadley said.
 

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