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Statistics and Data Analysis Sicko and the US’s 37 th Ranked Health Care System Where is the U.S.? Still in the News That Number 37 Ranking What is the source? What is it? Ranking of what? And why are we looking at it in our class on Statistics and Data Analysis? Interesting

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statistics and data analysis

Statistics and Data Analysis

Sicko and the US’s37th Ranked Health Care System

that number 37 ranking
That Number 37 Ranking
  • What is the source?
  • What is it? Ranking of what?
  • And why are we looking at it in our class on Statistics and Data Analysis?
    • Interesting
    • It’s an application of regression analysis.
the source behind the source
The Source Behind the Source

the who researchers were interested in a broader measure
The WHO Researchers Were Interested in a Broader Measure

These are the items listed in the NYT editorial.

they created a measure comp composite index
They Created a Measure – COMP = Composite Index

“In order to assess overall efficiency, the first step was to combine the individual

attainments on all five goals of the health system into a single number, which we call the composite index. The composite index is a weighted average of the five component goals specified above. First, country attainment on all five indicators (i.e., health, health inequality, responsiveness-level, responsiveness-distribution, and fair-financing) were rescaled restricting them to the [0,1] interval. Then the following weights were used to construct the overall composite measure: 25% for health (DALE), 25% for health inequality, 12.5% for the level of responsiveness, 12.5% for the distribution of responsiveness, and 25% for fairness in financing. These weights are based on a survey carried out by WHO to elicit stated preferences of individuals in their relative valuations of the goals of the health system.”

(From the WHO Technical Report)

did they rank countries by comp yes but that was not what produced the number 37 ranking
Did They Rank Countries by COMP? Yes, but that was not what produced the number 37 ranking!
so what is going on
So, What is Going On?
  • A Model: Health Care Output = a function of Health Care Inputs
  • INPUTS = Health Care Spending and Education of the Population
estimated model
Estimated Model





the best a country could do vs what they actually do
The Best a Country Could Do vs. What They Actually Do

Regression Prediction

c=Regression Residual

Country i actual outcome

Overall Health Care Efficiency = c/(b+c)

the us ranked 37 th
The US Ranked 37th!

Countries were ranked by overall efficiency

what did the study find
What Did The Study Find?

Did this study rank the world’s health care systems?

    • NO. The tables in the papers ranked the efficiencies of the world’s health care systems. A country could have the best health care system (rank first), and still be inefficient.
    • The highest ranked country (COMP) is Japan. Japan ranked 10th in the efficiency study.
  • Note the front page NYT Article, 6/21/00.