An Econometric Analysis of Veterans Health Care Utilization Using Two-part Models

Based on 1992 US National Survey of Veterans, we analyzed the nature of veterans' inpatient and outpatient health care utilization by estimating a count data two-part hurdle model. We also identified factors that affect veterans' choices between VA and non- VA health care facilities, using a bivariate probit model. Not surprisingly, we found that health condition measurers are the most important factors in determining veterans' health care utilization. Gender, income and health insurance are also significant. Family income is the most important factor which affect veterans' health facility choice decision. Veterans with lower income, without health insurance coverage, or those living near VA health care facilities are more likely to use VA health care system than others. Most of the demographic characteristics are not significant.