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Mr. Olafson was a reporter for The Houston Chronicle for seven years before his Web log cost him his job in July.
Similarly, in the log cost models, the estimated coefficient of the opt-out variable was positive and statistically significant.
In children, comorbidity (p < .01), serious mental illness (p < .01), addiction (p < .03) and pregnancy (p < .01) were associated with log cost; the model with those variables explained 6% of the variance in costs.
For a log (cost) regression where hospital volume is expressed in natural logs, the coefficient on volume provides the percentage increase in costs resulting from a one percentage point increase in hospital volume.
The logarithm of the cost per patient was modeled with the following formula: log(cost) = α + β 0·age + β 1·age 2 + ACG i + physician center) j + ε k ACG i ~ N 0, σ 1) physician center) j ~ N 0, σ 2) ε k ~ N 0, σ 3) Age was fitted as a fixed effect, with linear and quadratic terms.
To compute a consistent estimate of the percent change in costs for a log(cost) regression where hospital volume is specified in levels and polynomials of volume, we first multiplied each polynomial in volume in the regression by its respective coefficient.
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Adjusted mean log costs were then retransformed using Duan's smearing estimate [ 20].
Cost differentials between obese and normal weight children were expressed as "cost ratios" by modeling the log costs and then exponentiating the regression coefficients.
Simulations of the change in costs resulting from closing low-volume hospitals required converting regression estimates so that they reflected an unbiased estimate of costs rather than log (costs) [ 23].
GLMs have been shown to fit expenditures with significant heteroskedasticity better than ordinary least squares [ 10] and have the added benefit of yielding predicted expenditures without having to retransform log costs.
Second, the relative ranking of measures may be sensitive to regression method and specification in studies with small samples such as ours (see online appendix I for predictive ratios under a generalized linear model with log costs [available at http://dx.doi.org/10.2337/dc08-1099]).
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