The effect of emergency financial assistance on healthcare use

Henry Downes, David Phillips and James Sullivan

Journal of Public Economics, 2022, vol. 208, issue C

Abstract: Does providing financial assistance to people who have just experienced an income shock affect their healthcare use? To address this question, we examine healthcare outcomes in a setting where people at risk of homelessness due to an income shock were offered or denied referral to financial assistance quasi-randomly. Among callers who have been screened as eligible for assistance at Chicago’s Homelessness Prevention Call Center (HPCC), some are denied assistance because the availability of funding varies. Conditional on some observable characteristics, funding availability is as-good-as-randomly assigned to callers. We link callers to healthcare utilization records and observe their inpatient hospital stays and emergency department visits. We find that referral to financial assistance has little effect on overall healthcare use–we can reject increases in total utilization greater than 7% of the base rate and decreases of more than 4%. This null effect can be explained, in part, by the fact that the income shock does not significantly change overall healthcare use among those not receiving assistance, suggesting that these individuals can insure health and healthcare demand against these shocks in other ways.

Keywords: Homelessness prevention; Healthcare use; Social insurance (search for similar items in EconPapers)
JEL-codes: H75 I38 R21 R28 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pubeco:v:208:y:2022:i:c:s0047272722000287

DOI: 10.1016/j.jpubeco.2022.104626

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