Small Area Variation in Medicaid Utilization and Expenditures: Implications for Cost Containment and Quality of Care

Small Area Variation in Medicaid Utilization and Expenditures: Implications for Cost Containment and Quality of Care »
National and California regional comparison of the volume and cost of services delivered to Medicaid beneficiaries in 44 states

Principal Investigator: Richard Kronick, PhD
Funding: California Department of Health Care Services, the Robert Wood Johnson Foundation
Report: Differences In The Volume Of Services And In Prices Drive Big Variations In Medicaid Spending Among US States And Regions

The University of California San Diego, working with CAMRI, collaborated with DHCS staff and other key stakeholders to analyze data from Medi-Cal and 44 other states to compare the volume and cost of services delivered to Medi-Cal beneficiaries in California to the volume and cost of services delivered to beneficiaries in other states. The research team further evaluated the cost and volume of services delivered to beneficiaries across regions within California. Investigators analyzed the extent to which this variation was a result of the rate of payment, use of services, and/or quality of care or outcomes for beneficiaries.

The results of this analysis were presented at DHCS and compiled into a final report. This information allowed policy-makers to understand the relationship between variation in treatment patterns and variation in quality of care for Medi-Cal beneficiaries and Medicaid beneficiaries in other states. It provided DHCS an understanding of why Medicaid expenditures per beneficiary are lower in California than in many other states and a comparison of quality of care across states.