The Volume-Outcome Relationship Revisited: Practice Indeed Makes Perfect

Health Serv Res. 2018 Feb;53(1):15-34. doi: 10.1111/1475-6773.12696. Epub 2017 Sep 4.

Abstract

Objective: To examine the causal effect of a hospital's experience with treating hip fractures (volume) on patient treatment outcomes.

Data sources: We use a full sample of administrative data from German hospitals for 2007. The data provide detailed information on patients and hospitals. We also reference the hospitals' addresses and the zip codes of patients' place of residence.

Study design: We apply an instrumental variable approach to address endogeneity concerns due to reverse causality and unobserved patient heterogeneity. As instruments for case volume, we use the number of potential patients and number of other hospitals in the region surrounding each hospital.

Principal findings: Our results indicate that after applying an instrumental variables (IV) regression of volume on outcome, volume significantly increases quality.

Conclusions: We provide evidence for the practice-makes-perfect hypothesis by showing that volume is a driving factor for quality.

Keywords: Volume; hospital quality; instrumental variables; mortality.

MeSH terms

  • Adult
  • Aged
  • Aged, 80 and over
  • Female
  • Germany
  • Health Services Research*
  • Hip Fractures / therapy*
  • Hospital Bed Capacity / statistics & numerical data
  • Hospital Mortality / trends
  • Hospitals, High-Volume / statistics & numerical data*
  • Humans
  • Length of Stay / statistics & numerical data
  • Logistic Models
  • Male
  • Middle Aged
  • Outcome Assessment, Health Care
  • Quality Indicators, Health Care / statistics & numerical data
  • Quality of Health Care / statistics & numerical data*
  • Residence Characteristics
  • Socioeconomic Factors
  • Trauma Severity Indices
  • Young Adult