+

Health and Income Final PresentationTalwinder Sohi & Wendy ReshetarDecember 4, 2010MBA 512 Business Research & Development

+Income vs. Health – Facts

The US spends substantially more on health care than other developed countries.

The US spends over $6,500.00 per person on care each year.

16% of the US economy is devoted to health care.

Health care spending is consuming an increasing share of economic activity over time and has exceeded economic growth in the recent decade.

Health care costs have grown on average 2.5 percentage points faster than US gross domestic product since 1970.

+Income vs. Health - Facts

About 26% of the poor spent more than 10% of their income on health in 1996, the number increased to 33 percent by 2003.

Health insurance premium increases consistently outpace inflation and the growth in workers’ earnings. Premium increases have been 8-14% per year since 2000.

Families are paying more out-of-pocket for health care. For non-elderly individuals there was an increase from 16% in 1996 to 19% in 2003. For people below the federal poverty level, there was an increase from 26% in 1996 to 33% in 2003.

+Income vs. Health - Facts

Wealthier countries can afford to spend more on healthcare technologies. Strong correlation between wealth and health care

spending – as nations become wealthier, they chose to spend more of their wealth on health care.

Insurance coverage has increased. Insurance will the bear the costs of any new development

of health care technology .

+Questions

Overall question: Why are health care costs increasing?

Research Question: Does the level of income have an impact on health of Americans?

Research Hypothesis: There is a positive correlation to overall health and having a higher level of income.

GIVE US YOUR PRELIMINARY GUESS ON THE OUTCOME…WILL WE PROVE OUR HYPOTHESIS?

+Relevant Factors

Income Levels

Health Coverage

Profession

Age

Gender

Size of Family

Severity of Illness

Preventative Measures

Family Medical History

+Data Collection

Target Audience Residents18 years or older in the Tri-State area (New York,

New Jersey & Pennsylvania).

Sampling Plan Distributed surveys to friends, family and co-workers. Also, asked the above respondents to send surveys out to

people they know.

Summary of Respondents 56 Respondents

Method of Survey Administration Email with link to Survey Monkey

+Survey Questions

18 to 24

25 to 34

35 to 44

45 to 54

55 to 64

65 to 74

75 or over

97

1518

7

10

38.6%61.4%

Male Female

Age

Gender

+Survey Questions

Annual Income

Entry Level (less than or equal to $29,999)

Upper Middle ($50,000 to $79,999)

Six Figure ($100,000 or more)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

1 2 3 4 5 6 or more

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0% 36.8%

17.5%

24.6%

10.5%8.8%

1.8%

Living in Household

+Survey Questions

Field of Profession

Other Category (5) Disabled Auto Mechanic Technical Safety Professional Non Profit

Accou

ntin

g & Fin

ance

Admin

stra

tive

& C

leric

al

Banking

Call C

ente

r & C

usto

mer

Ser

vice

Creat

ive

& M

arke

ting

Educ

atio

n

Engi

neer

ing

Gov

ernm

ent &

Law

Hospi

talit

y

Homem

aker

Indu

stria

l & M

anuf

actu

ring

Info

rmat

ion

Tech

nolo

gy

Lega

l

Med

ical

& S

cien

ce

Retai

l & S

ales

Tran

spor

tatio

n & W

areh

ousing

Oth

er (p

leas

e sp

ecify

)0.0%

10.0%

20.0%

Executive (President, Vice Pres-ident), 10.7%

Upper Management (Regional, Director);

8.9%

Middle Manage-ment (Supervisor);

23.2%

Staff (Direct Report); 28.6%

Skilled Labor; 12.5%

General Labor; 16.1%

Level of Profession in above fields

+Survey Questions

25.0% 26.8%16.1%

23.2%

8.9%

Stress at the job

12

34 or more

0.0%

20.0%

40.0%

60.0%

80.0%

100.0% 87.0%

11.1%1.9%

0.0%

Number of Jobs

Less than 19 hours

20-29 hours

30-39 hours

40-49 hours

50-59 hours

60 hours or more

0.0%10.0%20.0%30.0%40.0%

Hours Worked per

Week

+Survey Questions

Type of Health Care

41

50 4 6

Work Status

Full-time or Part-time student

Work onlyFull time work and

attend school

Part time work and

attend school

3.7%

83.3%

7.4%5.6%

+Survey Questions

0%10%20%30%40%

Take prescribed medi-cation

Smoke Consume alcoholic beverages (less than 2

drinks per week)

Consume alcoholic beverages (3 or more

drinks per week)

Use illegal drugs I do not use any of the above to relax

Series1 0.094 0.094 0.264 0.226 0.057 0.491

5.0%

15.0%

25.0%

35.0%

45.0%

55.0%

Do you use any of the following methods to somewhat relax your mood ?

Out of the last 10 visits to a medical professional, list how many times you were there for the following?

+Survey Questions

Exercise Hours per week

0 1-5 6-10 11-15 16 or more

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

How conscientious are you about maintained a healthy diet?

2.5%7.5%

12.5%17.5%22.5%27.5%32.5%37.5%42.5%47.5%

+Analysis: One Sample Mean Hypothesis Test

The first question that we thought of is…Does a higher salary affect the number of routine checkups?

+Analysis: Two Sample Proportion Hypothesis Test

Does the level of profession impact a workers’ job stress level? Management: Executive, Upper Mgmt, Middle Non-Management: Staff, Skilled Labor, General Labor

+Analysis: Two Sample Proportion Hypothesis Test

Next, we wanted to know if people with higher stress levels are more likely to use Methods for reducing stress. Methods such as…drinking, smoking, drugs & prescribed medication.

+Definition of Overall Health

We didn’t directly ask respondents to rate their overall health.

INSTEAD, we asked specific individual questions that would lead to a consistent analysis AND would not be subjective.

From the data collected we derived the following formula: Overall Health = (Conscientious Diet) + (Hours of Exercise) +

(Level of Job Stress) + (Routine Check-ups) + (Alleviating Stress by Using A Method)

Corresponded each factors’ response with a number that identifies a ranking system

Best possible Overall Health Score = 85 points Next slide shows an example…

+How did we define overall Health?

+Simple Linear Regression Analysis Lastly…we wanted to see if there was

significant correlation between income and overall health.

Inputs Y-variable = Overall Health X-Variable = Income Level

0 = salary less than $50,000. 1= salary of $50,000 and greater

R-square is only 2.3%…so this means that only 2.3 percent of our overall health is explained when looking at income levels is explained.

Our p-value (.264) is great than alpha…(.05), therefore it is not significant.

ACCEPT THE NULL…there is not a positive correlation to overall health and having a higher level of income.

+Reporting

As you may recall… our Hypothesis statement stated that “there is a positive correlation to overall health and having a higher level of income”.

BUT…Conclusions from our Analyses People with a salary higher than $50,000 are not more

likely to go to the doctors for routine check-ups. The level of profession did not effect the workers’ job

stress level. Higher stress levels did not impact the use of methods to

reduce stress. Regression test accepted the null…no positive correlation.

Did we prove our hypothesis to be correct? NO!! There is NOT a positive correlation to overall health and

having a higher level of income.

+Suggestions/Recommendations Suggestions to improve …

One of the questions was not clear to people taking the survey Question #12 - Out of the last 10 visits to a medical professional,

list how many times you were there for the following? Results did not add up to 10 Some people skipped the question Felt overwhelmed with the question

Try to get a larger sample size Utilized other avenues for survey distribution

Solicited at health and wellness centers, mall & supermarkets

What could have we done differently? Do a deeper dive on what affects overall health…not just simply

linked to income? Possibly do more regression testing to find out significant factors.

+Questions?

Your results…