Americans are growing older—and their caretakers need to decide the best and most cost effective way to care for them.
Since 2011, nearly 77 million baby boomers have become eligible for Medicare. For the elderly and those suffering from chronic diseases, home healthcare (HHC) is a convenient and cost-effective solution that avoids the necessity of receiving care through hospitals and nursing homes.
HHC meets an important demand in the healthcare system. Experts have found that close to 90 percent of Americans wish to spend their final time at home. But how does the care HHC providers deliver compare to that of larger health institutions?
Last year, In collaboration with investigators at the University of California at Irvine, Dr. Jacqueline Zinn, professor in the Fox School’s Department of Risk, Insurance and Healthcare Management, has received a five-year grant from the National Institute of Health to investigate the cost effectiveness and quality of care provided by home healthcare agencies.
Over the last decade, the home healthcare field has seen dramatic increases in patients, care providers, and spending. The New York Times reported that individual states spend close to $200 billion of their own funds on Medicaid, making it the second biggest item within their budgets.
As projections continue to rise and healthcare technology advances, patients should be aware of their care options.
“What we don’t know is whether or not the technologies that lead to additional growth impact the quality of care delivered,” said Zinn. “In other words, do larger facilities have better quality associated with growth? What is the optimal [home healthcare] agency size with respect to cost and quality? These are the questions we hope to answer.”
Home healthcare not only includes rehabilitative care after surgery, but hospice care and palliative care, which is dedicated to relieving people’s physical and emotional symptoms after facing life-threatening illnesses.
“Healthcare is on track to become 20 percent of the GDP,” said Zinn. “That means one in every five dollars generated by the U.S. economy will be in the healthcare sector.”
Alongside her fellow researchers at the UC Irvine, Zinn aims to discover valuable insights for patients, government, and health institutions, and home healthcare agencies alike by learning more about this under-researched field.
Are you interested in the intersection of healthcare and business education? Read our article, “Why More Surgeons and Health Professionals Are Pursuing MBAs” and learn more about Fox School Research.
Is working remotely in your future?
For many, it already is. A 2016 poll from Gallup found that 43 percent of Americans are working remotely at least part of the time, up from 39 percent in 2012. According to a survey at the London Global Leadership Summit, executives anticipate more than half of their employees will be remote by 2020. With a workforce less attached to a physical office, how does this affect businesses?
Dr. Ram Mudambi, professor in the Fox School, seeks to understand this question and others like it, which play at the intersection of business, geography, and technology.
To do that, he launched International Business, Economic Geography, and Innovation (iBEGIN), a now-annual conference that aims to enhance research around the knowledge economy—based on intellectual capital and human talent—that sustains international business today.
“iBEGIN is based on the idea that connectivity across space is the ‘invisible web’ that underlies all human civilization,” Mudambi explains.
This past December, Mudambi and several of his fellow Fox School faculty and doctoral students attended iBEGIN at Ca’ Foscari University of Venice. The conference—sponsored by the Fox School’s Center for International Business Education and Research (CIBER) and the Office of Research, Doctoral Programs, and Strategic Initiatives, as well as Ca’ Foscari University—brings together experts from the fields of business, geography, and technological innovation to explore international connectedness in time, space, and economy.
“Innovation is the outcome of social interactions among people, through either organizations or personal relationships,” says Mudambi, “Studying such complex phenomena requires a holistic approach.”
This year, attendees sought to learn more about how employees who work remotely, away from their companies’ main offices or headquarters, impact how international businesses function and grow.
When remote employees spend time with their colleagues face-to-face, the parties are more likely to value their time together, increase their level of attention, and emphasize knowledge and information exchange. The conference attendees discussed how international businesses were using remote work, what forms of temporary co-location increased creative interaction and long-term relationships, and which mechanisms improved knowledge exchange.
iBEGIN expands upon the work of the CIBER, Temple University’s premiere program to promote academic research, curriculum development, and outreach programs in international business.
Funded by the Department of Education, CIBER plays a vital role in producing cutting-edge international business research, promoting international ideas within the community, and fostering worldwide learning among Temple students and faculty. As one of only 17 centers in the country, CIBER has received continuous federal funding since its inception in 2002.
Learn more about Fox School Research.
This was a busy—and for some, award-winning—fall semester for the Fox School research community!
On October 18, the Office of Research, Doctoral Programs, and Strategic Initiatives hosted its 7th Annual PhD Paper Competition in the MBA Commons of Alter Hall. This year, 31 doctoral students and alumni submitted papers and created visual posters of their research to compete for more than $3,000 in cash and prizes.
Papers were evaluated by Fox School faculty, who chose winners in categories including first year, second year, and third-to-fourth year doctoral students. Students also competed for best dissertation proposals and completed dissertations. The 15-member evaluation committee judged the rigor, novelty, and presentation of the research, as well as its contribution to theory, practice, or policy.
Winners included Lauren Spirko of the Statistical Science Department, who won first place in the completed dissertation category for her paper proposing a statistical method for analyzing enormous data sets of genes and their various types of expressions. See a full list of participants and winners here.
On November 1, the Office hosted its 15th Young Scholars Interdisciplinary Forum, which aims to facilitate interdisciplinary collaborative research projects that span disciplines within and outside of the Fox School. Together, twenty Fox doctoral students and faculty members received nearly $35,000 in grant funding for their research.
Han Chen, a Marketing and Management Information Systems PhD student, received a grant for her research aiming to understand the neurophysiological responses to branding and marketing with respect to age. The funding will go toward the purchase of eye-tracking glasses to monitor subjects’ eye movements when reviewing physical and digital advertising materials.
The Executive Doctorate in Business Administration (DBA) program also had students succeed this semester. Terry T. Namkung, a first-year DBA student and CEO of DC Energy Systems, was chosen as one of seven finalists in the 2017 Global Business Challenge. He presented his research—an energy panel that aims to reduce energy waste by 30% by decreasing the inefficiencies of Alternating Current to Direct Current adapters, converters, and inverters—in Brisbane, Australia, in early November.
Carla Cabarle, a second-year DBA student, showcased her work at the Fall 2017 Meeting of the Institute for Fraud Prevention. As one of five finalists, Carla presented on using analytics to predict the risk of financial statement fraud in crowdfunding to academics and industry experts in financial risk and fraud management.
On behalf of Paul Pavlou, senior associate dean of research and Milton F. Stauffer Professor in the Fox School, the Office congratulates the doctoral students and faculty on a very successful fall semester.
Learn more about Fox School Research.
For the financial community, the period around earnings announcements—the official public statement of a firm’s profitability—is often a time of speculation. As investors, knowing when to buy or sell stocks is part of the job. And when earnings announcements are released, the risks are only magnified.
The question is: Why hold onto a risky investment?
For decades, researchers have been unable to understand the irregular behavior of investors holding during earnings announcements. Dr. Pavel Savor, associate professor of finance at the Fox School of Business, proposes a groundbreaking explanation of this phenomenon in his paper, “Earnings Announcements and Systematic Risk.”
Depending on the news—good or bad—regarding a firm’s performance, earnings announcements can create a risky investing environment. Savor found that the expectation of a firm’s earnings can entice investors to hold stocks while expecting higher returns.
“People are naturally risk-averse,” says Savor. “If you are holding on to a risky asset, you need to be compensated for it.”
For example, if you were given the opportunity to hold a one percent stake in Google at the time of an earnings announcement, what should you do? “You would say, that’s not enough [stock], because it’s a very risky time.” If investors are holding a stock around earnings, they are going to demand higher returns. This risk-based explanation, Savor argues, causes the stock prices to increase during these periods.
And this doesn’t just impact the period around the earnings announcements. Savor found that the anticipation of the announcements has a longer term effect than previously thought. According to the research, the performance of a firm during an announcement period can predict its future growth two and three quarters into the future. Savor found that the returns at announcing periods were significantly better predictors for performance than market returns.
Much research has been conducted on earning announcements, but this study is the first of its kind to show that returns around earning announcements can be explained by risks inherent in those announcements.
Savor’s word to investors: Proceed with caution. “Be aware of the risk you are bearing,” he says. The gamble of investments may be inevitable, but with the recognition of the risk involved, firms can perform better. Earning announcements not only reveal a firm’s progress, but also give insight to how the economy is reacting to stocks.
“We [researchers] all hope our work will have tremendous impact,” says Savor. He anticipates this research will help investors be better informed when choosing their investments. “Our paper is likely to change at least how people view some return patterns. This is something no one was able to show before.”
Learn more about Fox School Research.
Do you find it unfair when a friend gets a referral bonus after you bought the product they recommended? According to new research, the answer largely depends on social distance—or the closeness of a relationship—between the new and existing customer.
In the last five years, the percentage of U.S. citizens with social media profiles has grown from 56% to 81%. Companies want to take advantage of their customers’ social networks, so many encourage customers to promote their products by offering monetary incentives for referrals.
Researchers Yili Hong of Arizona State, Paul A. Pavlou of Temple University, Nan Shi of Shanghai University, and Kanliang Wang of Renmin University of China investigated the success of these online social referrals, with particular interest in the social distance between customers and their expectations of fairness in the distribution of referral rewards.
The research outlines three types of online referral incentives: rewards that go to only the existing customer, to only the new customer, or divided equally between the two. Groupon, for example, offers a monetary bonus to those who have made successful referrals. However, Dropbox splits their reward equally between both the old and new clients.
The researchers conducted both lab and field experiments with people in two types of personal relationships: a long social distance, such as an acquaintance; and a small social distance, such as a friend or a close relative.
Hong, Pavlou, Shi, and Wang found that acquaintances in long social distance relationships prefer the monetary reward to be split equally. But for close friends with a small social distance, people are less concerned about the fairness of the reward.
Interestingly, online referrals are more successful between friends with smaller social distances, despite the reward not being fairly split between friends.
The study is the first of its kind to consider both fairness and social distance in social commerce. “While fairness has been viewed as a fundamental prerequisite to successful referrals, it is only important for distant acquaintances and not close friends,” says Pavlou, senior associate dean and Milton F. Stauffer Professor in the Fox School of Business at Temple University.
This research provides new insight for companies designing online referral systems. Based on these findings, Pavlou says, “Companies can experiment with less than equal (fair) referrals to maximize the success of the referral while minimizing the cost of the reward.”
Learn more about Fox School Research.
For some, outsourcing is a dirty word. But does it have to be?
According to Forbes, approximately 300,000 jobs are outsourced by the United States yearly. “Offshore” outsourcing, in particular, has become a widely used method in relocating office jobs to countries where labor costs are significantly lower. For example, Carrier, an Indianapolis-based HVAC company, made headlines for laying off 600 workers, sending those jobs to Mexico instead.
However, new research from the Fox School shows that choosing to outsource in a foreign country goes beyond a pros and cons list or a review of your bottom line—it is a strategic business decision.
J. Jay Choi, professor of finance, and Masaaki “Mike” Kotabe, professor of international business and marketing, embarked on a collaborative project in order to understand what motivates firms to seek options such as offshore outsourcing, in a way previous research has not.
Their paper, “Flexibility as Firm Value Drivers: Evidence from Offshore Outsourcing,” which was accepted for publication in the Global Strategy Journal, blends the researchers’ backgrounds strategy and finance to analyze outsourcing as an approach rather than a choice.
Choi and Kotabe found that firms chose to outsource in a foreign country in order to have flexibility in the face of uncertainty. An uncertain market can mean an upsurge in prices, a decline in demand, unforeseen competition, or an economic recession. Companies have to be flexible in order to adapt to these changes—which offshore outsourcing can offer.
“Our work fills an important gap demonstrating that flexibility adds value in more uncertain conditions, more so internationally than domestically,” said Kotabe. “Outsourcing provides firms the ability to adjust and evaluate their options in order to gain quality resources with limited costs.”
When firms are able to move their operations offshore, they essentially gain more freedom. Lower costs, more suppliers, and the ability to expand in more financially driven areas become widely available.
This level of flexibility is not as easily achievable when it comes to domestic operations.
However, Choi and Kotabe explain this approach may come with set-backs. “Offshoring allows firms to perform better financially, however, this relationship may be somewhat weakened by potential loss of domestic innovation and talent while dealing with foreign suppliers.”
Choi and Kotabe merged their respective disciplines in order to gain a unique perspective of outsourcing. “The key is to conduct business research as realistically as possible, so that we can provide relevant research findings to the business community,” said Choi.
The taboos that surround outsourcing may still exist, but with this new research, businesses and consumers alike can better understand when outsourcing will provide the best results.
Learn more about Fox School Research.
While there are many roads to launching a successful essay, article, or research paper, many of those roads have bumps, tolls, and avoidable potholes. Luckily, the Office of Research, Doctoral Programs, and Strategic Initiatives at the Fox School is here to help doctoral students and faculty avoid some of the most common writing mistakes.
Matt MacNaughton, a professional copy editor, shares his six recommendations for writers who want to get the most out of their papers.
1. Know Your Audience
Take a moment to ask, “Who am I writing this for?” If you are planning to submit your work to a journal or present it at a conference, look for submission guidelines that can help you tailor your entry for those readers. If your paper has the wrong format or layout, or uses a non-preferred citation style, your readers may decide that this isn’t the publication for you.
Be sure to introduce language with which your readers may not be familiar. If your audience is in your field, then perhaps you can assume a rudimentary knowledge of technical terms. If you are writing for general purpose, like a newspaper or magazine, define any jargon. If it’s redundant, an editor will remove it anyway.
2. Utilize Clear, Concise Language
In writing as in life, our diction requires our utmost attention. While we sometimes think that certain concepts require vivaciously paced sentences that deliberately pontificate their topic with the multisyllabic majesty of a character from Twelfth Night, most of the time it is truly unnecessary.
Did you understand that paragraph? Probably not as well or as quickly as you could have, if I had simply said, “Long sentences with big words are not usually better than shorter sentences with simpler words that convey the same meaning.” In fact, the latter contains more information in a shorter sentence. Keep it simple!
3. Quick Grammar Tips are Great…
Spelling mistakes and grammar missteps happen all the time, whether intentionally or by accident, but it does not have to be this way! There are a number of tools online that can help with easy questions concerning unfamiliar grammar rules. For example, does the comma go inside quotations, or outside? How about a semicolon or colon? I could tell you that most places in America will tell you unequivocally to put the comma inside and the colon outside, however –
4. …But Not Always Perfect
–in the U.K., sometimes those grammar rules are flipped!
Be very careful with these rules, because even if I comes before E except after C, the science can be very flawed! While knowing the difference between They’re, There, and Their will never come back to bite you (there are, in fact, no exceptions to this rule), style guides vary widely over things as silly as the Oxford comma. While quick grammar rules and tips can be helpful, don’t be afraid to take a few seconds to search for an answer in a style guide or the internet. A recommended style guide is the Associated Press, but, again, it depends on the requirements of the publication or conference.
5. Read Your Paper Out Loud
This is something that a number of people have heard about but very few practice. When you read your work out loud, you become acutely aware of each and every choice you made while writing, and can tease out the minute problems in pacing and language that otherwise your eyes would have glossed over .
You may not realize it, but you can hear grammar mistakes that your brain doesn’t recognize in print. You may even find yourself confused out loud when you were positive it made sense in print.
6. Get a Second Pair of Eyes
So you’ve gone through your paper to make sure you weren’t being verbose, that you were aligned with your submission guidelines, and that all your questions of grammar were addressed. Then, for good measure, you read it out loud and found a few more areas that could be edited for clarity. But sometimes reading and re-reading a paper can make you essay-blind. You need a second pair of eyes (and, maybe, a vacation).
That’s why the Office of Research at the Fox School has set you up to succeed with a copy editor who is available to read your manuscripts and provide feedback tailored to your needs. Doctoral students and faculty can send a request for copy editing services through our website. Once received, most submissions are returned with feedback within a week. Happy writing!
Learn more about Fox School Research.
Paul A. Pavlou is the Milton F. Stauffer Professor and senior associate dean at the Fox School of Business, and co-director of Temple University’s Data Science Institute. Dr. Pavlou has repeatedly been ranked number one in the world in publications by top publications in the Management Information Systems (MIS) discipline in 2010-2016, he has won several best paper awards, and his work has been cited more than 31,000 times by Google Scholar.
We caught up with Dr. Pavlou to ask what advice he has for doctoral students and aspiring researchers.
How do you determine a research question?
Observe what’s happening in the real world and try to see if you can contribute in those emerging areas. Start by seeing what is going on around the world, what companies do, what is happening in society, and trying to see what is interesting in the world and what excites industry and managers. It is about looking at the “big picture.” Often, an idea is not perfect the first time. You have to discuss it, improve it, sharpen it, and challenge it. You have to ask why people, academics, and managers would read your work—it should be an interesting problem that has broader societal implications. So you have to focus on what interests people and about what people would get excited. There’s simply no magic formula!
What happens once you have an idea you would like to research?
First, form a team that has complementary strengths. You look for researchers who either have or are doing work in a certain area. For example, if you are working with highly quantitative and empirical research, you need to find people who can deal with large scale data and sophisticated types of methodology. Sometimes you need an expert in an area who can guide the research in a certain way. You need to consider the unique advantages your project may carry. What do we have in terms of data? And keep asking, is this a practical problem that is exciting and relevant to industry and practice?
How can PhD students get feedback and develop their own points of view on research topics?
We have different forums to give feedback from different departments. There are school-wide events, such as the Young Scholars Interdisciplinary Forum and the PhD Paper Competition, where students can present their work, and we encourage them to be receptive to the feedback. There are also multiple department-specific events, and students should make an effort to present in front of the faculty. However, it is important that doctoral students have their own voice and viewpoints on their research topics. I do not want students to just go along with my feedback without questioning it. Students need to be able to defend their positions and not to agree without carefully thinking about the feedback. Students are supposed to know their topic better than anybody.
What advice do you have for current and prospective PhD students?
My advice is to do interesting research that is theoretically and methodologically strong. Try to be focused in your substantive area of expertise. It is best to be strong in one area versus being weak in two areas. Quality is more important than quantity! Also, be as rigorous as possible in terms of your methodology—and the doctoral programs are the best place to strengthen your methodological skills.
How can the Office of Research help doctoral students?
The Office of Research supports students in multiple ways. We provide services such as copyediting for manuscripts, and a workbook with tips for successful grant writing. We have small funding opportunities such as our new seed-funding program that is designed help students establish proof-of-concepts or complete a pilot study. We offer numerous databases for research, and can support travel arrangements for presenting at conferences. However, the most useful resource we have is the faculty and their time. In both the PhD program and Doctorate in Business Administration (DBA) program, we have advisors who can guide your research and dissertation.
Learn more about Fox School Research.
Dr. Daniel Funk has made a significant mark on the field of sport management.
Funk, the Washburn Senior Research Fellow in the School of Sport, Tourism, and Hospitality Management (STHM) and the director of the Sport Industry Research Center at Temple University, recently received the Earle F. Zeigler Award from the North American Society for Sport Management (NASSM), one of the highest honors given to individuals in the field of sport research.
The award celebrates Dr. Funk as a key contributor to NASSM’s premier Journal of Sport Management and one of the most often-cited authors in the history of the sport management discipline.
Throughout his career, Funk has studied sport and recreation consumer experiences in order to help organizations understand customer acquisition, retention, and expenditure. He investigates the cognitive, physical, and organizational factors that shape our preferences and behavior to develop an effective mixture of marketing and management strategies that have become renown in the world of sport research.
Funk’s contributions have ranged from studies of an individual’s psychological connection to sports, to the relationship between sports team allegiance and customer loyalty. For example, Funk, along with Dr. Jeremy Jordan, associate dean at STHM, contributed to a paper by PhD student Bradley Baker about why runners keep running marathons.
The study investigated the relationship between runners’ satisfaction with and repeat participation in long-distance running events. Many studies have reviewed consumer satisfaction, but not much research has been conducted on experiential products, such as marathons.
After growing dramatically since 1960, road running peaked in 2013 and has been slowly declining each year. Between 2014 and 2016, two million less people crossed a finish line, but there were 2,000 more races from which to choose.
“Like any other business, running has a finite amount of customers,” Funk said. “If there is a decline in the demand for races and an oversupply in the amount of races offered, then there is an issue.”
While the researchers found a linear correlation between satisfaction and repeated participation in marathons—the more satisfied a customer is, the more likely they are to run the race again—satisfaction from an experience, like a marathon, is different than traditional customer satisfaction.
For instance, runners who have a “bucket list” may not come back to that race, regardless of how satisfied they are. Factors indicating a higher likelihood to return included previous running experience and geography—meaning that experienced runners and local runners were more likely to come back, despite that fact that first-time runners reported higher satisfaction levels with the race.
The article, “Run Again Another Day: The Role of Satisfaction on Repeat Marathon Participation,” was the winner in the NASSM’s national student research competition in 2016 and was recently published by the Journal of Sport Management.
For 800,000 young immigrants, the future is uncertain.
In August, the Trump Administration rescinded the executive actions that President Obama took to protect minors who illegally immigrated to the United States, not by their own choice, but alongside their parents. Established in 2012, the Deferred Action for Childhood Arrivals (DACA) policy allowed young immigrants to live, work, and go to college without the fear of deportation.
The Trump Administration maintains that Obama’s actions were unconstitutional, exceeding the scope of the executive branch by effectively changing the country’s laws—a responsibility that rests solely with Congress.
Kevin Fandl, assistant professor of Legal Studies at the Fox School, studied whether that claim is true in his paper, “Presidential Power to Protect Dreamers: Abusive or Proper?” which was accepted for publication by the Yale Law & Policy Review Inter Alia.
Fandl reviewed 200 years of case laws and statutes since the founding of the United States to learn what role the president has in enforcing—or ignoring—legislation affecting young immigrants, known as “Dreamers.” His research asks the question: “Does the president have the ability to selectively choose how the law is enforced?”
The president makes an oath to uphold the laws of this country. But, Fandl says, that doesn’t mean he has unlimited capacity to enforce each and every law. The president has the power of prosecutorial discretion—the authority to choose which laws to impose and to what degree—to allocate the resources available, such as budgets or staff, in line with his Administration’s priorities.
“The government is not a business,” says Fandl. “But in this case, you have to look at it from a business perspective and say, ‘This is how we have to dedicate our resources.'”
Fandl relates it to marijuana—an illegal drug by federal law, but legalized or decriminalized in many states. By choosing to not crack down on dispensaries, administrations can reallocate those resources to other issues, like, for example, border security.
In the case of DACA, Obama chose to not enforce immigration laws against individuals brought to this country as children. Fandl says, “Interpreting how the law is enforced is not only within the power of the executive—it is a logical approach to resource management.”
As Fandl’s research of the historical precedence shows, the Trump Administration’s argument against the constitutionality of DACA is flawed. The powers of prosecutorial discretion protect the president’s ability to spend more time or money on enforcing some laws over others.
Fandl’s paper, “Presidential Power to Protect Dreamers: Abusive or Proper?” will be published online by the Yale Law & Policy Review Inter Alia in the coming weeks.
Learn more about Fox School Research.
Job hunting is a challenge for most people—but for ex-convicts transitioning back into everyday life, finding a job can be nearly impossible. Data suggests that over half of the men and women who return home after being released from prison are unemployed for up to a year. Many of the formerly incarcerated see self-employment as one of the only routes to earn a steady income without resorting to low-wage employment.
Dr. Charlotte Ren, a Fox School associate professor in the Strategic Management department, saw the challenges the formerly incarcerated face and created an integrated course that provides entrepreneurial skills to this underserved population. This year, Ren’s course, “The Social Entrepreneurial Approach to Community Reintegration,” was identified by the Academy of Management as one of the finest innovations in the area of entrepreneurship education and received the 2017 Innovation in Entrepreneurship Pedagogy Award.
Ren’s course is part of a larger, on-going initiative called the Penn Restorative Entrepreneurship Program (PREP), an initiative she founded in 2014. “At the core of this course [and PREP] is the idea of addressing societal challenges and transforming lives through knowledge creation and sharing by bringing together college students and members of disadvantaged populations,” said Ren.
The ten-week accelerated program brings together students from multiple disciplines and formerly incarcerated individuals for intensive training on the many ways of starting and running small businesses and social enterprises.
After completing the course, students from both the university and the judicial system will be able to understand major theories of entrepreneurship, acquire skills involved in designing and implementing social entrepreneurship programs, and also understand the nature and scope of community reintegration problems
The economic benefits of re-entry programs like Ren’s have been projected to make a significant impact. According to the Center for Economic and Policy Research, the U.S. economy lost between $57 and $65 billion in 2008 alone due to unemployed or underemployed ex-convicts. Through her course, Ren is helping to create opportunities for the formerly incarcerated to contribute to society and our economy in a meaningful way.
“I hope my course will inspire more faculty members,” Ren said, “both at the Fox School and across other schools and universities, to develop courses that apply their research and teaching expertise into addressing some of the pressing social issues in society.”
Learn more about Fox School Research.
Healthcare in this United States is a lightning rod for debate. As Congress grapples with the future of the Affordable Care Act, the American people face uncertainty in medical care and costs.
To improve the efficiency, quality, and cost-effectiveness for patient care, hospitals have increasingly turned digital, using Electronic Medical Record (EMR) systems to store and share patient’s medical history. However, as the use of EMR systems increased, so did reported healthcare costs.
Since the adoption of the physician coding systems used to store and update EMRs in 2009, Medicare has experienced an estimated $380 million increase in reimbursements per year. Medicare accused hospitals of “upcoding,” or illegally overstating patients’ diagnoses and treatment, in an effort to receive a higher reimbursement. A 2012 study showed that hospitals in Utica, NY, and Nashville, TN, increased its patient reimbursement claims by 43% and 82% respectively after adopting EMR systems.
In response to this drastic surge in reimbursements, the Centers for Medicare and Medicaid Services conducted a pilot program, the Recovery Audit Program, from 2004 to 2010. Researchers at the Fox School partnered with researchers at McGill University to study how this audit program has been able to reduce illegal Medicare reimbursement claims, thus lessening the financial burden on American taxpayers.
The initial goal of implementing EMRs was to lower costs by reducing medical errors, over-testing, and re-admissions. But the findings of Dr. Kartik K. Ganju of McGill and Drs. Hilal Atasoy and Paul Pavlou of Temple University, confirmed that the adoption of the coding system is associated with an increase in Medicare reimbursements, particularly in the case of for-profit hospitals.
The research found an average of $217,745 in inflated reimbursements to Medicare per hospital per year, and even higher costs (nearly $370,000 in overages) at for-profit hospitals. After finding $693 million in overpayments by Medicare in six pilot states, the audit program was adopted nationwide in 2010.
The researchers looked into this “trillion-dollar conundrum” and found that the audit program successfully combated upcoding by using default templates and by identifying and removing cloned records of old patient that were erroneously copied into a new patient’s medical chart. After the audit became nationwide, the study found that it had corrected up to $2 billion in incorrect claims; yet for-profit hospitals were still reporting high reimbursement fees than their nonprofit counterparts.
The bottom line? While EMRs have enhanced coordination and information sharing, they also make it easier to report expensive and potentially inappropriate healthcare expenses.
As the first successful evaluation of the Recovery Audit Program, the researchers praise the work that has been done, but warn that stronger oversight by the government is still needed to combat ever-increasing costs, especially at for-profit hospitals.
Learn more about Fox School Research.
When looking for a restaurant, bakery, plumber, or lawyer, you’re likely to visit sites like Yelp or Angie’s List to help make a choice. In fact, recent research shows that 78 percent of consumers in the United States will read online reviews prior to making a purchase or decision. Meanwhile, businesses can use these review sites to interact more directly with their customers, through tools like new owner response features.
How does this online interaction translate into real-world performance? Dr. Subodha Kumar, professor of Marketing and Supply Chain Management at the Fox School, conducted a study to find out.
Kumar examines the impact of the adoption of the business owner response feature within online review platforms in his paper, “Exit, Voice, and Response in Digital Platforms: An Empirical Investigation of Online Management Response Strategies,” which was accepted for publication in the Information Systems Research, an A-level journal.
Businesses that use the response features saw an increased number of mobile “check-ins” through sites like FourSquare and Facebook. Although the feature has been beneficial for businesses that use it, the key to consistent success resides in the need for companies to stay up-to-date with ways to connect with their consumers, both present and future.
“Overall, the new features supported through digital platforms will help businesses develop the right engagement strategy, improve consumer experience, and generate more reviews and consumer traffic, which will ultimately open more revenue generating opportunities for both the digital platforms and businesses,” said Kumar. This strategy will essentially drive higher website traffic and, if done well, enhance customer relations.
The study also found that use of the online response feature impacted the performance of nearby businesses. For example, in analyzing the performance of nearby restaurants in direct competition, businesses that directly engaged with customers online increased their number of check-ins, while businesses that did not use the features saw a decrease. This spillover effect suggests that businesses must be aware of how their neighbors and competitors are engaging with customers online in order to optimize their own digital strategies.
With the growth of mobile check-ins, social media, and online reviews, the research possibilities are evolving as well. “A future research direction is to examine which types of online management responses are more likely to attract consumers and enhance business performance,” said Kumar.
Dr. Subodha Kumar recently joined the Fox School. He will be a part of the Data Science Institute, an interdisciplinary body that connects multiple disciplinary perspectives to increase collaboration in the fields of computer science, math and statistics, and business knowledge.
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Vikas Mittal, Ph. D. alum of Temple University’s Fox School of Business has been recently appointed as Co-editor of the Journal of Marketing. Along with Neil Morgan of Indiana University, Mittal will be furthering the exceptional flow of submissions coming from the A-level journal. Mittal who brings a dynamic combination of expertise in Consumer Behavior as well Strategy Focus helps to expand the range of expertise that the journal reflects. Mittal who is looking forward to the appointment sees his new post as a tremendous responsibility, and hopes to maintain and serve the mission of the Journal of Marketing.
“In my early years, my research benefitted greatly from the high quality feedback I received from the editorial teams of many journals,” said Mittal. The Journal of Marketing, which has an impact factor measure of 3.8, is seen as a great influencer for notable research and encourages hard work from its reviewers and authors. Mittal whose goal is to continue the tradition of valuable feedback has witnessed the great impact of journals. “At many times, the feedback was tough, but always helpful in improving my research,” he said.
The Fox School of Business, which prides itself of producing efficient and influential academics, recognizes Mittal’s appointment as just that. “My time at the Fox School inculcated the value of serving our discipline in many ways—by publishing high quality research, by mentoring doctoral students, and by serving through the review and editorial process,” said Mittal. As we continue to see present and past students flourish, we are reminded of the dedication and perseverance that our PhD program embodies.
Scott Bruce, a Fox School of Business PhD candidate in the Statistical Science department, recently had his paper, “A Scalable Framework for NBA Player and Team Comparisons Using Player Tracking Data,” accepted for publication in the Journal of Sports Analytics.
In this paper, Bruce discusses the endless possibilities yielded by creating new statistics that can quantify aspects of player tracking and ball movements during games through Principal Components Analysis. “This method is very scalable in the sense that as new statistics emerge in the future, this approach can again be applied using the new existing data to reconstruct,” said Bruce. With numerous applications already existing in personnel management, Bruce presented two case studies to further investigate statistical profiles amongst players and teams of interest.
Traditional statistics primarily focus on reporting players’ shot attempts, makes, and points per game. However, as analysis advances, shots and points can be further broken down in order to calculate players’ offensive preferences and the effect this has on the team as a whole. “When comparing players, this allows for much better and more intuitive comparisons as seen in our case study, and for team comparisons, we saw that the player tracking statistics also helped us better understand how teams approach winning and how that impacted their success,” Bruce said.
With the release of player tracking data and statistics motivating Bruce to work on this type of research, he is also eager to see what discoveries its implementation will lead to. “I hope this can also be seen as a good example of how statistical methods can be applied to increasingly complex data to efficiently extract useful and meaningful information,” Bruce said. Hoping that his work will encourage broader use of player comparison metrics and evaluation, Bruce sees this as a good starting point for personnel management decision-making as well.
This paper won Bruce an award from the 2015 Fox Research Competition, after which he was greatly encouraged to get it published. “The department and faculty are extremely supportive of student research. The research competition, young scholars forum, conference travel awards provide students with great opportunities to share and improve their research,” Said Bruce.
Bruce is currently working on his dissertation with Dr. Cheng Yong Tang (Temple University) and Dr. Robert Krafty (University of Pittsburgh), focusing on time-frequency analysis of replicated nonstationary time series, looking for applications in modern biomedical experiments.