ESTIMATING MARGINAL RETURNS TO TREATMENT FOR TYPE 2 DIABETIC PATIENTS: EVIDENCE FROM SINGAPORE.

Abstract

This paper applies a regression discontinuity design to healthcare and financing data of Type 2 diabetic patients from the National University Hospital, Singapore, to evaluate the effect of medical treatment on the frequency of outpatient visits, health expenditure, and health outcomes. I hypothesize, that patients with blood sugar levels just above the respective thresholds used in recommending treatment have more intensive treatment rates and subsequently record higher frequency of outpatient visits, larger health expenditure and better health outcomes at the end of the study period, relative to patients just below. The empirical results show that, patients just above the 9% threshold, with more intensive treatment rates saw improvement in their health outcome, decreased frequency of outpatient visits and no impact on health expenditure.