Reports on Managed Care Findings from Brown University Provide New Insights (Algorithmic Decision-making In Health Care: Evidence From Post-acute Care In Medicare Advantage): Managed Care

2025 NOV 28 (NewsRx) -- By a News Reporter-Staff News Editor at Health Policy and Law Daily -- Fresh data on Managed Care are presented in a new report. According to news reporting originating in Providence, Rhode Island, by NewsRx editors, the research stated, “Health insurers use predictive algorithms to determine the necessary level of care and deny services they deem unnecessary. Using a difference-in-differences design, I study the partnership of a large Medicare Advantage insurer with a firm that uses a predictive algorithm to aid post-acute care coverage decisions.”

Financial supporters for this research include Lipitz Center at Johns Hopkins University, United States, NIH National Institute on Aging (NIA).

The news reporters obtained a quote from the research from Brown University, “This partnership led to an immediate and sustained 13 percent decline in the length of skilled nursing facility stays. This effect was partially driven by large declines in longer skilled nursing facility stays (over 30 days).”

According to the news reporters, the research concluded: “Despite reductions in health care use, I do not observe changes in health outcomes following the adoption of the predictive algorithm.”

This research has been peer-reviewed.

For more information on this research see: Algorithmic Decision-making In Health Care: Evidence From Post-acute Care In Medicare Advantage. Journal of Health Economics, 2025;104. Journal of Health Economics can be contacted at: Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands. (Elsevier - www.elsevier.com; Journal of Health Economics - http://www.journals.elsevier.com/journal-of-health-economics/)

Our news correspondents report that additional information may be obtained by contacting Jeffrey Marr, Brown University, School of Public Health, Providence, RI 02912, United States.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.jhealeco.2025.103055. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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