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Bed availability and hospital utilization: estimates of the "Roemer effect"
Health Care Financing Review
|March 6, 1984
Summary
Roemer's Law suggests more hospital beds increase their use. This study found a 10% bed increase led to a 4% rise in Medicare patient hospital utilization, confirming the law's impact.
Area of Science:
- Health economics
- Healthcare policy
- Hospital management
Background:
- Roemer's Law posits a direct relationship between hospital bed supply and utilization rates.
- Controlling hospital construction relies on understanding this relationship for effective health planning.
- Previous studies show varied results, from no effect to a one-to-one correlation.
Purpose of the Study:
- To re-evaluate Roemer's Law using a specific patient population.
- To quantify the impact of hospital bed availability on utilization rates.
- To address limitations of prior research on hospital bed capacity.
Main Methods:
- Focused analysis on Medicare enrollees.
- Utilized a unique and comprehensive healthcare database.
- Employed statistical methods to determine the relationship between bed supply and utilization.
Main Results:
- A 10 percent increase in hospital beds per capita was associated with approximately a 4 percent increase in hospital utilization.
- The findings provide a more precise estimate of Roemer's Law effect.
- The study controlled for factors that may have confounded previous research.
Conclusions:
- Roemer's Law holds true for Medicare patients, with a quantifiable effect.
- Health planning initiatives should consider this relationship when managing hospital bed capacity.
- The findings support the need for careful consideration of hospital bed expansion.