(UMGC) HMGT 400 Regression Model Data Analysis Research

Question #1 (15 credits):

The FINAL EXAM dataset provides some information about hospitals in 2011 and 2012.Analyze the

FINAL EXAM dataset. You may calculate the “Hospital Beds per Population (Per Capita)” variable by

dividing “total_hospital_beds by tot_population. Use the analysis results to complete Table 1 below

Create a scatter plot with the correct variable and axes labels and legend. Use the plot to

compare hospital cost (x-axes) and revenue (y-axes) and discuss your findings?

0 1,000,000,000 2,000,000,000 3,000,000,000 4,000,000,000

1,000,000,000

2,000,000,000

3,000,000,000

4,000,000,000

5,000,000,000

6,000,000,000

7,000,000,000

8,000,000,000

9,000,000,000

10,000,000,000

total_hosp_revenue

Hospital cost

Revenue

The findings from the scatter plot shows that there is higher concentration closer to zero in both

hospital cost and revenues generated. The analysis shows that the revenues generated were

higher than the hospital costs incurred. This is an important consideration because it shows

that the hospitals are sustainable.

If we assume that hospital net-benefit is a good measure of hospital performance, which type

of hospitals had the better performance (for-profit or non-profit hospitals)?

For-profit hospitals performed better that not for profit hospitals. The average hospital net

benefit in for profit hospitals was $1,094,388,295 compared to $269,724,370 in not for profit

organizations.

Overall, what are the main statistically significant differences between for-profit and non-for-

profit hospitals?

The main statistically significant difference between the two types is the Medicare discharge which

had a lower p-value. This means that there was significant difference in Medicare discharge between

for profit and not for profit hospitals.

Question #3 (15 credits):

The dataset provides the variable herf_ins called the Herfindahl–Hirschman Index which measures

market concentration for the health insurance market. Please note that unlike the class exercise in

which you used herf_cat, which measured market concentration for the hospital market, in this

assignment you are using herf_ins which measures market concentration for the health insurance

market.