Why Is End-of-Life Spending So High? Evidence from Cancer Patients

Dan Zeltzer, Liran Einav, Amy Finkelstein, Tzvi Shir, Salomon M. Stemmer and Ran D. Balicer
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Amy Finkelstein: MIT and NBER
Tzvi Shir: Clalit Health Services
Salomon M. Stemmer: Rabin Medical Center and Tel Aviv University
Ran D. Balicer: Clalit Health Services and Ben Gurion University

The Review of Economics and Statistics, 2023, vol. 105, issue 3, 511-527

Abstract: We study the sources of high end-of-life spending for cancer patients. Even among patients with similar initial prognoses, spending in the year postdiagnosis is over twice as high for those who die within the year than those who survive. Elevated spending on decedents is predominantly driven by higher inpatient spending, particularly low-intensity admissions. However, most such admissions do not result in death, making it difficult to target spending reductions. Furthermore, end-of-life spending is substantially more elevated for younger patients, compared to older patients with similar prognoses. Results highlight sources of high end-of-life spending without revealing any natural “remedies.”

Date: 2023
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https://doi.org/10.1162/rest_a_01066
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Working Paper: Why is End-of-Life Spending So High? Evidence from Cancer Patients (2020)
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