An econometric analysis of veterans’ health care utilization using two-part models

Based on the 1992 US National Survey of Veterans, we analyzed veterans’ inpatient and outpatient health care utilization patterns by estimating count data two-part hurdle models. We also identified factors that affect veterans’ choice of health care between VA and non-VA facilities using count data selection models. Not surprisingly, we found that health condition measures are the most important factors in determining veterans’ health care utilization. Gender, disability, and employment status are also significant. Veterans with lower socio-economic status, without other health insurance coverages, or living near VA health care facilities are more likely to use VA health care system for outpatient visits and inpatient admissions. Our study underscores the role of alternative sources of health care and insurance in discerning the true effects of the explanatory variables on an individual’s total demand for health care and its allocation between alternative providers. Copyright Springer-Verlag 2004