Market Analysis of the CHAMPUS Select Program in the Fort Stewart Catchment Areas

This graduate management project was designed to determine if there were any significant differences in the population of beneficiaries who are using CHAMPUS Select from that population using standard CHAMPUS providers. Additionally, the project examined the preferred provider network penetration ra...

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Bibliographic Details
Main Author: Napier, Alan
Format: Report
Language:English
Subjects:
CHAMPUS
GEORGIA
HEALTH
HEALTH CARE FACILITIES
HOSPITALS
Information Science
INSURANCE
LINEAR REGRESSION ANALYSIS
LINEAR SYSTEMS
MANAGEMENT
MARKETING
MATHEMATICAL MODELS
Medical Facilities, Equipment and Supplies
MEDICAL SERVICES
Medicine and Medical Research
NETWORKS
PATIENTS
PENETRATION
PHYSICIAN SERVICES UTILIZATION
POPULATION
PREDICTIONS
PREFERRED PROVIDER ORGANIZATION
PROBABILITY
RATES
REGRESSION ANALYSIS
SAMPLING
VARIABLES
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Description
Summary:This graduate management project was designed to determine if there were any significant differences in the population of beneficiaries who are using CHAMPUS Select from that population using standard CHAMPUS providers. Additionally, the project examined the preferred provider network penetration rate. The study sample was 1993 CHAMPUS outpatient claims from the Fort Stewart, Georgia, catchment area. Multiple linear regression analysis using a linear probability model demonstrated that the explanatory variables PATIENT AGE, PRESENCE OF OTHER HEALTH INSURANCE, BRANCH OF SERVICE, BENEFICIARY CATEGORY, and ZIPCODE were significant predictors of CHAMPUS Select utilization in the claims sample for fiscal year 1993. The variables PREVIOUS YEARS EXPENDITURES, GENDER, and SPONSOR PAY Grade were not significant as predictor variables of the dependent variable at the 0.05 alpha level The LPM regression on CHAMPUS Select claims resulted in an R-sguared value of 0.0247 and F-value of 31.279 with 27 degrees of freedom for an associated probability of 0.0001 for the overall model. The CHAMPUS Select claims penetration rate of 17.1% was found to be significantly higher than the expected rate of 15.6%. The expected rate was derived from the percentage of CHAMPUS Select providers in the study sample's total CHAMPUS providers. The difference in the observed and expected proportions gives a Z-test statistic of 7.525 with an associated probability of 2.624E-14.