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Graphical Structure Learning Identifies Hypothesized Mechanisms for Heterogeneous Treatment Effects in Medicaid

Sanjay Basu1,2, Parth Sheth1,3, Sadiq Y Patel1,3

  • 1Waymark, San Francisco, California, United States.

American Journal of Epidemiology
|April 23, 2026
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Summary

Graphical methods revealed key mechanisms in population health programs for Medicaid beneficiaries. Behavioral health therapy, clinical pharmacy, community health workers, and care coordination showed significant associations with improved health outcomes.

Keywords:
Medicaidcausal discoverydirected acyclic graphsheterogeneous treatment effectspopulation health management

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Area of Science:

  • Health Services Research
  • Causal Inference
  • Population Health Management

Background:

  • Heterogeneous treatment effect models identify high-benefit Medicaid beneficiaries but lack mechanistic detail.
  • Population health programs require understanding intervention-specific mechanisms for optimization.

Purpose of the Study:

  • To combine graphical structure learning and regression-based effect estimation for mechanistic hypothesis generation.
  • To investigate intervention-specific mechanisms in a Medicaid managed care program.

Main Methods:

  • Employed Peter-Clark algorithm and Greedy Equivalence Search for conditional dependency identification.
  • Analyzed associations between baseline characteristics, interventions (behavioral health therapy, clinical pharmacy, community health workers, care coordination), and acute care outcomes.
  • Utilized false coverage rate correction for post-selection inference.

Main Results:

  • Behavioral health therapy linked to reduced psychiatric admissions (RR, 0.27).
  • Clinical pharmacy demonstrated dose-dependent cost reductions.
  • Community health workers associated with emergency department visit reduction (RR, 0.62).
  • Care coordination linked to emergency department reduction in women (RR, 0.38).

Conclusions:

  • Graphical methods can generate mechanistic hypotheses complementing heterogeneous treatment effect models.
  • Identified specific intervention-pathway associations warranting further investigation.
  • Findings support targeted population health strategies for Medicaid enrollees.