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The Economic Consequences of Hospital Admissions.


ABSTRACT: We use an event study approach to examine the economic consequences of hospital admissions for adults in two datasets: survey data from the Health and Retirement Study, and hospitalization data linked to credit reports. For non-elderly adults with health insurance, hospital admissions increase out-of-pocket medical spending, unpaid medical bills and bankruptcy, and reduce earnings, income, access to credit and consumer borrowing. The earnings decline is substantial compared to the out-of-pocket spending increase, and is minimally insured prior to age-eligibility for Social Security Retirement Income. Relative to the insured non-elderly, the uninsured non-elderly experience much larger increases in unpaid medical bills and bankruptcy rates following a hospital admission. Hospital admissions trigger less than 5 percent of all bankruptcies.

SUBMITTER: Dobkin C 

PROVIDER: S-EPMC5809140 | biostudies-literature | 2018 Feb

REPOSITORIES: biostudies-literature

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The Economic Consequences of Hospital Admissions.

Dobkin Carlos C   Finkelstein Amy A   Kluender Raymond R   Notowidigdo Matthew J MJ  

The American economic review 20180201 2


We use an event study approach to examine the economic consequences of hospital admissions for adults in two datasets: survey data from the Health and Retirement Study, and hospitalization data linked to credit reports. For non-elderly adults with health insurance, hospital admissions increase out-of-pocket medical spending, unpaid medical bills and bankruptcy, and reduce earnings, income, access to credit and consumer borrowing. The earnings decline is substantial compared to the out-of-pocket  ...[more]

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