Effects of maternity-stay legislation on 'drive-through deliveries'

We evaluate the change in length-of-stay and charges for vaginal and cesarean deliveries before and after the implementation of a law establishing a minimum maternity stay in Maryland. Using discharge abstract data collected by the Maryland Health Services Cost Review Commission, we find that after the law was enacted, Maryland's average length-of-stay and average charges for both types of deliveries increased, but the increase in charges was less than the cost of an average hospital day. Multivariate analysis shows that the implementation of the law reduced the sources of variation among mothers' length-of-stay and hospital charges. Overall, we estimate that the law cost payers an additional $5.5 million for maternity stays.