Table 1 Descriptive statistic of the samples. This table reports the summary statistics of all samples used in this study. Panel A provides details of original health expenses and costing sharing variable before and after DRGs payment. Panel B provides the variables for OLS model. In the OLS model, dependent indicators are log value of each item. LOS means length of stay, gender is coded as 1 for female and 2 for male. Married is coded as 1 for married patients and 2 for non-married patients. M_type indicates medical insurance type, where 1 indicates resident insurance and 2 indicates employee insurance. D_Admission means admission department for patient, and we encoded this variable based on the patient’s admission department because we used data from different hospitals across various regions. GDP_pc means gross domestic product per capita, N_worker means health workers per 1,000 people in this region, and N_Hospital means total number of hospitals in the region

Panel A: Summary statistics of original expenditure variable before and after DRGs payment

Variables

N

Mean

SD

N

Mean

SD

FFS payment

DRGs payment

Hospitalization Expense

33,484

14264.9

20436.52

13,230

14030.85

22,847

Drug Expense

33,484

1226.558

3922.99

13,230

1723.035

6025.505

Treatment Expense

33,484

5978.03

8998.112

13,230

3893.964

6025.505

Medical Insurance Fund

33,484

5641.801

11352.75

13,230

7122.927

13004.93

Out-of-pocket

33,484

8649.147

16178.61

13,230

6315.773

10257.42

Panel B: Descriptive statistic of the variables for OLS model

Variables

N

Mean

SD

P25

Median

P75

Hospitalization Expense

46,714

9.186

0.761

8.645

9.128

9.604

Drug Expense

46,714

8.124

0.944

7.479

8.148

8.736

Treatment Expense

46,714

6.054

1.325

5.1

5.762

6.818

Medical Insurance Fund

46,714

7.098

3.109

7.351

8.105

8.802

Out-of-pocket

46,714

8.487

0.919

7.908

8.367

9.008

DRG

46,714

0.283

0.451

0

0

1

Age

46,714

71.34

7.43

65.3

70

76.3

Gender

46,714

1.582

0.493

1

2

2

Married

46,714

1.102

0.426

1

1

1

LOS

46,714

9.46

7.807

6

8

11

M_type

46,714

1.398

0.49

1

1

2

D_Admission

46,714

3.183

1.479

2

3

5

CPI

46,714

1.118

0.066

1.059

1.118

1.174

GDP _pc

46,714

10.97

0.332

10.822

11.051

11.182

N_worker

46,714

7.372

1.069

6.5

7.42

8.23

N_hospital

46,714

1849.271

897.006

803

2451

2640