Question #4- [RStudio Users]

Linear Regression Model 

If you have chosen to work with RStudio, please run the following model and complete the following tables.

1st Model:

Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital’s ownership on hospital net-benefit? Discuss your finding, do you think having higher beds has positive impact on the hospital net benefit? What about the ownership?

Benefit=F(b0+B1bed+b2Own2+B3ow2+b4own3+e)

2nd Model:

Now, estimate the impact of being a member of a system on hospital net benefit? And discuss your finding (not more than 2 lines)? Is it significant?

3nd Model:

Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in your model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net benefit?

Based on your finding please recommend 3 policies to improve hospital performance, please make sure to use the final model for your recommendation.

Discuss your findings.

Linear Regression Model 

If you have chosen to work with Excel, please run the models and complete the following tables.

Model 1:

Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in teaching hospitals?

Note: hospital-net-benefit= total_hosp_revenue - total_hosp_cost

Y(benefit), B0+B1(beds)

Model 2:

Run a linear model and predict the difference between hospital beds (use the bed-tot) and hospital net-benefit in non-teaching hospitals?

Use the results from model 1 and model 2 and compare the results between teaching and non-teaching hospitals.

Model 3:

Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in first model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in teaching hospitals?

Model 4:

Now, include the ratio of ratio-Medicare-discharge and ratio-Medicaid-discharge in first model? How do you evaluate the impact of having higher Medicare and Medicaid patients on hospital net-benefit in non-teaching hospitals?

Based on your finding please recommend 3 policies to improve hospital performance, please make sure to use the final model for your recommendation.