In 2006, the Massachusetts legislature passed the health care reform bill. The main targets of this reform were to contain hospital costs, to increase insurance rate and to improve quality of medical services. The primary focus of this paper is to explore the overall impact of the Massachusetts Health Care Reform on hospital operational costs and quality of medical services. Three econometric models of cost, salaries and quality were developed to examine the impacts of the reform on the hospital cost and quality. Consistent with our predictions, the final regression results show that the reform had positive effects on the quality of Massachusetts hospital services and the costs of Massachusetts hospitals were contained.
Worcester Polytechnic Institute
Interactive Qualifying Project
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