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Productivity Growth in Treating a Major Chronic Health Condition

Author

Listed:
  • John A. Romley
  • Dana Goldman
  • Neeraj Sood
  • Abe C. Dunn

    (Bureau of Economic Analysis)

Abstract

Recent assessments of acute episodes of care point to productivity growth stemming from improvements in patient outcomes. This study assesses productivity growth in the treatment of a major chronic condition, specifically, type 2 diabetes. Analyzing traditional Medicare beneficiaries with new diagnoses over 2004-2012, we find that the productivity of health care improved at an annualized rate of 2.2%. In this context productivity growth translated into only modest improvement in patient outcomes; most of the growth was realized in the form of lower treatment costs. These findings are robust to a range of sensitivity analyses.

Suggested Citation

  • John A. Romley & Dana Goldman & Neeraj Sood & Abe C. Dunn, 2020. "Productivity Growth in Treating a Major Chronic Health Condition," BEA Papers 0112, Bureau of Economic Analysis.
    • Handle: RePEc:bea:papers:0112
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    More about this item

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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