The Effect of Mid-to-Long-Term Hospitalization on the Catastrophic Health Expenditure: Focusing on the Mediating...

Area of Science:

• Health Economics
• Public Health
• Socioeconomic Determinants of Health

Background:

• Mid-to-long-term hospitalization (MLTH) poses significant financial burdens on households due to high medical costs and income loss.
• Catastrophic health expenditure (CHE) is defined as medical expenses exceeding a household's ability to pay.
• Understanding the economic impact of prolonged hospital stays is crucial for public health policy.

Purpose of the Study:

• To investigate the direct impact of MLTH on the incidence of CHE.
• To examine the mediating role of earned income reduction rate (EIRR) in the relationship between MLTH and CHE.

Main Methods:

• Utilized data from the Korean Welfare Panel Study (2015-2017).
• Included 1671 households with earned income.
• Employed three-step regression analyses to assess mediation effects.

Main Results:

• MLTH was found to directly increase CHE.
• MLTH was also shown to increase EIRR.
• Both EIRR and MLTH significantly contributed to CHE, with EIRR mediating the effect of MLTH on CHE (95% CI: 0.364–0.644).

Conclusions:

• CHE is influenced not only by medical costs but also by income loss due to MLTH.
• Earned income reduction is a critical factor to consider when analyzing the causes of CHE.
• This research provides a broader perspective on the socioeconomic factors contributing to catastrophic health expenditure.