EPA 600/5-74-017
July 1974
                        Socioeconomic Environmental Studies Series
   Outpatient Medical Costs Related  to Air
    Pollution  in the Portland, Oregon Area
                                 Office of Research and Development

                                 U.S. Environmental Protection Agency
                                 Washington, D.C. 20460

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                                                EPA-600/5-74-01
                                                July 1974
   OUTPATIENT MEDICAL COSTS RELATED TO AIR

   POLLUTION IN THE PORTLAND,  OREGON AREA
                     by
               John A.  Jaksch
            Herbert H.  Stoevener
    Department of Agricultural Economics
           Oregon State University
             Corvallis, Oregon
           Contract No. 68-01-0423
              Project 07AAC-02
           Program Element 1H1094
               Project Officer

               Thomas Waddell
  Washington Environmental Research Center
United States Environmental Protection Agency
           Washington, D.C.  20460
                Prepared for
     Office of Research and Development
  Washington Environmental Research Center
United States Environmental Protection Agency
           Washington, D.C.  20460

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                                ABSTRACT


This study has attempted to quantify in monetary terms the effects of air
pollution on the consumption of outpatient medical services.  The hypotheses
were that air pollution can aggravate a state of health resulting in increased
consumption of outpatient medical services and in the number of contacts with
the medical system for certain respiratory, cardiovascular, and other diseases
aggravated by air pollution.

The study period was 1969-1970, and centered in the Portland, Oregon area.
Statistical models were formulated, explaining individual outpatient consump-
tion of medical services.  Measures of suspended particulate air pollution
and meteorological conditions, as well as socioeconomic-demographic variables
thought to influence the consumption of medical services, were included in the
models as explanatory variables.

The statistical results indicated that the procedures used in the study hold
promise for quantifying the medical costs of air pollution.  The results did
show air pollution to have an effect on the consumption of outpatient medical
services used to treat certain respiratory diseases.

This report was submitted in fulfillment  of Project Number 07AAC-02, Contract
Number 68-01-0423, by the Department of Agricultural Economics, Oregon State
University, Corvallis, Oregon, under the  sponsorship of  the Environmental Pro-
tection Agency.  Work was completed as of October  1.
                                   ii

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                       CONTENTS
                                                     Page

Abstract	    ii

List of Figures	    iv

List of Tables	    v

Acknowledgements.. 	    vi

Chapters

I     Conclusions	    1

II    Recommendations	    2

III   Introduction	    4

IV    Theoretical Framework 	    7

V     A Description of the Study Area and the
      Kaiser Plan	    34

VI    Compiling the Medical Data	    42

VII   Compiling the Socioeconomic-Demographic Data.    50

VIII  Compiling the Air Pollution and
      Meteorological Data	    60

IX    Statistical Results 	    71

X     References	    96

XI    Appendices

            Appendix A.	102
            Appendix B	123
                           iii

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                      FIGURES

No.                                               Page

1   Preference Map of a Well Consumer	    10

2   Preference Map of an  111 Consumer  Given
    Air Quality  a^	    12

3   Preference Map of an  111 Consumer  Given
    Air Quality  a»	    14

4   The Study Area	    35

5   Isopleth Map for Portland  Area	    61
                            iv

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                       TABLES

No.                                             Page

1    The Disease Classification System	45

2    Outpatient California Relative Value
     Schedule Dollar Equivalency Fees 	  48

3    Household Income Response Categories
     and Transformations	52

4    Transformations Performed on the
     Response to the Drinking Question	55

5    Smoking Characteristics and Transforma-
     tions on the Response Categories	56

6    Analysis of Variance Table for the Nine
     Suspended Particulate Stations 	  72

7    Regression Results of Statistical Model
     10:  Respiratory Diseases	78

8    Regression Results of Statistical Model
     10:  Circulatory-Respiratory Diseases. .  .  80

9    Regression Results of Statistical Model
     11:  Respiratory Diseases - One Day Lag.  .  93
B-l  Pretest Regression Results of Statistical
     Model 10:  Respiratory Diseases - Unlagged 123

B-2  Pretest Regression Results of Statistical
     Model 10:  Circulatory-Respiratory
     Diseases - Unlagged	124

B-3  Pretest Regression Results of Statistical
     Model 11:  Respiratory Diseases - Lagged
     One Day	125

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                            ACKNOWLEDGEMENT S
The authors are indebted  to numerous  individuals  and organizations  for pro-
viding data, technical  advice,  and other assistance for  this  study.   Especially
valuable were  the  inputs  provided by  Dr.  Merwyn Greenlick and his associates
at the Kaiser  Health  Services Research Center,  the staffs of  Columbia-Willamette
Air Pollution  Authority,  Department of Environmental Quality, and Southwest
Air Pollution  Control Authority.   At  Oregon State University, Dr. Sheldon
Wagner (Environmental Health Science  Center), Dr. John A. Edwards  (Department
of Agricultural Economics), Dr. Richard W.  Boubel (Department of Mechanical
Engineering),  and  Mr. James Sasser (Computer Center) made very important con-
tributions.  Of course, the authors retain  full responsibility for  any inade-
quacies which  the  study may contain.

The U.S. Environmental Protection Agency  supported this  work  financially.  Mrs.
Audree Berrey  typed the final manuscript.

Last, but not  least,  the  senior author is indebted to his wife, Carol Jaksch,
for her unlimited  assistance and  encouragement  throughout the two years of the
research study.
                                    vi

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                             I.  CONCLUSIONS

The results of this study indicate that air pollution and meteorological  con-
ditions (lagged and unlagged) have an effect on the consumption of outpatient
medical services used to treat respiratory diseases.

The regression results indicate that the procedures used in this study hold
promise for quantifying the medical costs of air pollution.

As an economic cost, it would appear that air pollution has a minimal effect
on increasing the quantity of outpatient medical services consumed per contact
with the medical system.  The main reason appears to be that many such visits
are routine, and while air pollution may affect the number of visits, it  does
not materially affect the cost per visit.

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                          II.  RECOMMENDATIONS

Air pollution appears to have a minimal effect on increasing the quantity of
outpatient medical services consumed per contact with the medical system.
is important to know, because it substantially reduces the need to do additional
research pn the effects of air pollution on outpatient medical consumption and
suggests other areas in which research on the medical costs of air pollution
may be more productive.  The procedures developed in this study hold promise
            I
in quantifying medical costs attributed to air pollution.  Hence, it is  recom-
mended that future research attempting to quantify such costs concentrate in
three general areas.

     1.  Any future research on the outpatient medical costs of air
     pollution should investigate the effect of  air pollution on  the
     number of contacts with the medical system.  While the  consump-
     tion of medical services per visit may be  fairly constant, the number
     of contacts with the medical system may be  affected by  air pollution.
     While a model on this was formulated and tested within  this  study,
     there were not enough observations to derive meaningful results.

     2.  An effort should be made to determine  the effect of air  pollution
     on the consumption of inpatient medical services.  There should be
     more variety in the types of inpatient services consumed per contact
     with the medical system and, hence, more variability.

     3.  A research effort should be made to examine and quantify the total
     medical costs attributable to air pollution; that is, outpatient and
 Under support of the United States Environmental Protection Agency  (Washington
 Environmental Research Center, Washington, B.C., 20460), research in this area
 is in progress at the Department of Agricultural Economics at Oregon State Uni-
 versity.  The research is expected to be completed by December 31, 1974.  Also
 in-house research is being conducted by the Center in this area.

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     inpatient medical costs (so-called direct medical costs) plus indirect
                                                                2
     costs (days lost from work because of air pollution, etc.).
2
 The United States Environmental Protection Agency (Washington Environmental
 Research Center, Washington, D.C., 20460) is in the process of negotiating a
 contract to accomplish this objective.  The area of study will be the St. Louis
 Standard Metropolitan Statistical Area.  The study is scheduled to be complete*
 by June 1976.

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                            III.  INTRODUCTION

                                The Problem
For informed and economically efficient decisions to be made in managing  the
environment, adequate information must be provided to the decision-maker.   One
of the main problems of air quality management is balancing the benefits  that
society derives against the costs incurred from using the atmosphere  for waste
disposal.  To strike such a balance, the decision-maker must have quantitative
estimates of the costs and benefits associated with achieving certain environ-
mental quality levels.  The provision of such estimates involves difficult
issues of measurement and evaluation.

While dependable systematic estimates of costs resulting from the effects of
air pollution are still quite rare, progress is being made.  Within the past
decade several studies have been completed, estimating property and material
costs of air pollution and the effects of pollution on property values  [25, 38,
47].  An important cost yet to be measured, with any high level of confidence,
is the medical costs attributable to air pollution.  Considerable evidence  in
the medical literature exists to support the hypothesis that air pollution
affects human health and, particularly, aggravates certain respiratory and
cardiovascular diseases [19, 68, 69].  Adverse health effects of air  pollution
result in economic losses of unknown magnitudes.  These losses to society
emanate from two main sources:  (1) the medical costs incurred in treating  the
disease, and (2) the value of the ill person's foregone production while  sick.
It is the purpose of this research to estimate some of the outpatient medical
costs attributable to air pollution.

     The data bases afforded this research appeared to offer an opportunity
to overcome some data deficiencies observed in earlier medical studies in-
vestigating the effects of air pollution on health.  More specifically, in  the,
Portland, Oregon, Standard Metropolitan Statistical Area (S.M.S.A.) air pollution
data were available from several air pollution control agencies, and  were repre-
sentative of the main air pollution problem in the study area, suspended

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particulate matter.  Adequate meteorological  data were  available  from several
National Weather  Service stations.  An excellent source of  individual medical
data was provided by Kaiser Foundation Health Plan.  This allowed the research
effort to concentrate on the effects of air pollution on specific quantities
of outpatient medical services consumed.  This  is in contrast  to  other air
pollution-health  effects studies which used a more aggregative approach (number
of doctor office  visits, number of hospital admissions, etc.)  in  attempts to
delineate the effects of air pollution on health.  Detailed socioeconomic-
demographic data  were maintained with the medical data.  Hence, the  fact there
appeared to be available reasonably good data on a wide range  of  relevant phe-
nomena affecting  medical consumption (air pollution, meteorological,  medical,
and socioeconomic-demographic) held special promise for productive empirical
research.

                               Objectives
The objectives to be accomplished by this research are  as follows:
     1.  To present an economic model of consumer choice, from which
     relevant hypotheses about the consumption  of medical services can
     be derived.

     2.   To identify certain cardiovascular, respiratory,  and other
     diseases which can be aggravated by air  pollution.

     3.   To estimate the effect of air pollution, if any,  on  the con-
     sumption of  outpatient medical services  used to treat  the diseases.

     4.   If there is an effect of air pollution on the consumption of
     outpatient medical services, to quantify this effect in monetary
     terms.

     5.   To determine the effect, if any, air  pollution has on the
     incidence rate of the diseases identified  in (2) above.

The first of the  above objectives is accomplished in Chapter IV of this report.
It presents the economic framework, and the statistical models and hypotheses

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to be tested.  The study area and the Kaiser Health Plan are described  in
Chapter V.  Chapter VI details the compiling of the medical data and  the  coni-
struction of the dependent variables in the statistical models.  The  collection
of the socioeconomic-demographic data and the formation of the socioeconomic
variables included in the statistical models are discussed in Chapter VII.  The
collection and organization of air pollution and meteorological data, and the
assigning of air pollution and meteorological values to the observations  on
medical costs are explained in Chapter VIII.  Chapter IX presents the results
of the analysis.

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                       IV.  THEORETICAL FRAMEWORK

                           The Economic Model
This section begins by specifying some of  the assumptions used  to  formulate
the economic model upon which this study is based.  A graphic presentation
of the economic model is given.  From the  graphic specification, two  impor-
tant implications are drawn which minimize the importance of medical  service
prices and income in explaining the consumption of medical services for  cer-
tain cardiovascular-respiratory diseases.

In order to isolate the effect of air pollution on health, account must  be
taken of other variables which could influence the consumption  of medical ser-
vices.  A general framework is specified, which delineates some of these char-
acteristics.  From the general framework,  the hypotheses and the statistical
models to test them are derived.

Some General Assumptions
Assume there is a representative consumer-patient who is suffering from, or
has a tendency to become afflicted by, certain diseases associated with  air
pollution.  This consumer is a free agent  to enter the market for medical care.
There are no physical constraints which would prohibit him from obtaining such
care.

This study is concerned only with the short-term effects of air pollution on
pre-existing (chronic) and acute cases of  certain respiratory,  cardiovascular,
and other diseases.  These diseases are thought by the medical  profession to be
aggravated by air pollution, or have been  shown by previous studies to be asso-
ciated with air pollution.

Diseases of the cardiovascular and respiratory system affect two essential life
systems of the body.  Many of these diseases, if left untreated, are  fatal, or
inflict such pain, suffering, and mental anguish upon the victim as to result
in a decrease of life's enjoyment.  It is assumed that any consumer presently
having any of the diseases, or newly contracting one of them, would be aware

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of these consequences.  Given the choice between the alternatives,  it  is  assumed
that the representative consumer will actively seek medical  care  to maintain or
improve his state of health.

It is argued that the consumer is unable to effectively evaluate  medical  care,
and has to rely primarily upon the physician's advice  for  the  treatment required
to remedy the illness.  Most consumers do not have the expertise  to effectively
evaluate alternative bundles of medical services which could be used to treat
their disease, or to judge the quality of physician services provided  to  them.
There are so many variables which affect diseases from one incident to the  next
that, in many instances, it is difficult even for the physician to  determine
what to do.

Each disease incident will have a different degree of acuteness or  severity, re-
quiring a different intensity of treatment.  It is argued  that there is a cer-
tain minimum amount of medical care, given the type of disease and  its degree
                                                                            2
of severity, which will maintain or improve the consumer's state  of health,
and that this will be the minimum treatment level prescribed by the physician.

Graphic Specification of the Economic Model
A consumer's expenditures on medical care evolve from his  preference map  for
medical services and other goods.  The shape of his indifference  map will be
different, aeteris paribus, depending on whether he is ill or  not.   If he is
ill, the shape of the indifference curve will be affected  by the  severity of
 Obviously, for this to hold, it is necessary  to  assume  that life is preferable
 to death and that, if given a choice, one would  choose  to  be free of pain and
 suffering.  A second supposition is  that the  consumer expects the consumption
 of medical services to alleviate his illness.
2
 A consumer's state of health will change over time,  and will be dependent upon
 many socioeconomic-demographic characteristics as well  as  the type of disease
 contracted.  The consumption of medical services may do no more than preserve
 a patient's health state, or retard  the rate  of  change  toward further deterior-
 ation (terminal cancer, for example, where  treatment just  postpones the inevi-
 table).  In other instances, the consumption  of  medical services may cure the
 patient of the disease and improve his health state.

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the disease state.  The severity of the disease state can be influenced by the
air quality the patient is subject to, as well as the patient's socioeconomic-
demographic status.  In the following, attention is focused only on the hypo-
thesized effect air pollution might have on the disease state.

Figure 1 refers to a consumer in a good state of health.  Money is shown on the
vertical axis, and services as a numerative for all commodities other than medical
services.  Medical services are shown on the horizontal axis, and are* expressed
as an index.  The index denotes the physical quantities of all medical services
consumed to treat an illenss.  Excluded from this index are items which would
he considered frills of medical care and which are not needed to treat the
patient's illness.

The usual assumptions about the indifference curves in Figure 1 hold:  utility
is constant for movements along an indifference curve, a higher indifference
curve is preferred to a lower indifference curve (I111 is preferred to I"; I"
is preferred to I'), the indifference curves do not intersect, and they are
concave from above.

The slopes of these curves play an important role in the analysis.  It can be
expected that the preference for the consumption of medical services is not
strong for the well consumer.  He may need medical treatment of a preventive
nature (immunization shots and yearly physical checkups, for example), or anti-
cipate the consumption of some medical services in case he does get ill.  Under
these circumstances, the marginal rate of substitution of medical services for
money will be declining rapidly.  A point of satiation is reached, and additional
medical services become a discommodity.  Points E, F, and G on I1'', I", and I',
respectively, in Figure 1 are such points of satiation.

OM in Figure 1 is defined as the consumer's permanent income.  MW represents
his budget constraint, given the price for medical services.  M'S would be the
optimum quantity of medical services consumed.  If the consumer were to buy
health insurance, MJ would represent the premium costs.  The lower unit costs
Of medical services with insurance would be reflected in JP.  This budget

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M'S
                  MS
                                                             Medical
                                                              Services
             Figure 1.  Preference map of  a well  consumer.
                                 10

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constraint continues as PT  (with the same slope as MW)  to  the  right  of P  as
the limits of the insurance policy are exceeded.
the optimum quantity of medical services consumed.
the limits of the insurance policy are exceeded.   With insurance, MS would be
K1 is an important point in the decision to purchase medical  insurance.   If  the
consumer expects that his consumption of medical services would be  less  than K*,
he would be better off not to purchase insurance.  Up to K1,  the  total monetary
outlay for the same quantity of medical services would be less without insur-
ance than with insurance (premium cost MJ plus the cost of medical  services  with
insurance, as reflected by the price line JP).

Admittedly this framework is an oversimplification.  It fails to  address  the
question of the consumer's feelings about uncertainty.  However,  it will  be  appar-
ent later that this issue is not central to this study.

Assume that the same consumer has become ill  with a disease aggravated by air
pollution.  Reference is made to Figure 2, where MS   is defined  as the  amount
                                                   al
of medical services needed in attempts to preserve, improve,  or prevent  further
                                                2
deterioration of the consumer's state of health.   Except where it  is noted,
everything in Figure 2 is defined as in Figure 1.  Any treatment  level to the
left of MS   can be attributed to additional  medical care beyond  that needed to
          al
maintain the person's health state.
QSI"', QLI", QNI', and QVI are defined as indifference  curves  in Figure  2.   Given
the alternatives of premature death or continued pain  and suffering when  the
treatment is not obtained, a consumer would be willing to give  up any  amount  of
money in order to  receive the maintenance level of  treatment.   The marginal rate
of substitution of medical services for money rapidly  declines.  Hence, as with
 It is assumed, for the purposes of this discussion,  that  the  limits  of  the
 policy are not exceeded.  Thus, JP would be the relevant  portion  of  the con-
 sumer's budget constraint.
 Hereafter the words "maintaining the consumer's state of  health"  will have the
 same meaning as "preserve, improve, or prevent further  deterioration of the con-
 sumer's (patient's) state of health."

                                    11

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                                               MEDICAL
                                               SERVICES
Figure  2.  Preference map of an ill consumer given
          air quality a .
                         12

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Figure 1,  it  does not  take  too much  additional  treatment for the consumer to
become satiated of medical  services.   This  satiation level is represented by
E, F, G, and  D on QS1"', QLI',  and  QVI,  respectively.
Medical  services, MS   ,  are  prescribed  by  the  physician.   The consumer will at
                    al
least purchase MS   of medical  services in his desire  to maintain his  state of
                 al
health.  The relevant  portion of  the  consumer's budget constraint, with insur-
ance, is JP, which is  tangent to  the  indifference  curve QLI"  at  H.  The consumer
purchases  slightly more  medical services at R  than the recommended MS   .   At
                                                                     al
this tangency, utility is maximized and the consumer will  pay, in addition to MJ
on health  insurance, JU  for  the purchase of R  medical  services.

It should  be noted that  the  optimum quantity of medical services purchased by
the uninsured patient  is not greatly  different from R, although  the  patient
will be worse off than he would be if he were  insured. To see this  in Figure 2,
construct  a line  (MW)  running through M and parallel to PT.   To  consume the
required medical services MS   without  insurance would place  the consumer on
                             al
an indifference curve  well below  QLI".   More specifically,  utility is  maximized
at tangency point A on indifference curve  QVI.   The patient consumes B medical
services and pays MC for it.

What happens if air quality  deteriorates from  a. to a_? Assuming that the con-
sumer is afflicted with  a disease aggravated by air pollution, one would  expect
a tendency for the patient to become  ill more  often, and/or the  severity  of
each disease incident  to increase.  In  both instances  the  result implies  an
increase in demand for medical  services.   This  situation is portrayed  in  Figure
3.  All definitions that applied  to Figure 2 are also  applicable to  Figure 3.
The consumer's entire  preference map  for medical services  has shifted  to  the
right.  Now MS   is the  quantity of medical services required to maintain the
              32
patient's state of health.   The consumer's relevant budget constraint  is  again
JP, which is tangent to  QNI' at V.  The consumer will  pay  the insurance premium
plus JZ for the consumption  of Y medical services.
                                    13

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£
                                                                      Medical
                                                                       Services
            Figure 3.  Preference map  of  an  ill consumer given air quality a  .
                                           14

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In comparison with Figure 2, MS   is less than MS    (the  amount  of medical ser-
                               al                32
vices necessary to maintain the consumer's state of  health has increased); JZ

is greater than JU (total monetary outlay for medical services has increased).

From a monetary standpoint the consumer is worse off.  The increase  in  the con-

sumption of medical services resulting from the deterioration in air quality,
and the resulting increase in monetary outlay for medical services (the differ-

ence between JZ and JU), represents an economic cost which could have been fore-

gone if air pollution had not increased.


Two important implications can be drawn from Figures 2 and 3 with respect  to

the price and income elasticities of demand for medical services.  In Figure  3
the dashed line connecting points VAB represents a price  consumption curve.

The curve is steeply, positively sloped, and shows that as the price of medical

services changes, the amount of medical services demanded changes proportionately
less:  the price elasticity of demand for medical services is highly inelastic.

Also in Figure 3 the solid line connecting points VCD represents an  income con-
               2
sumption curve.   The curve is highly positively sloped and illustrates that

the amount of medical services demanded will not change materially with changes

in the consumer's income:  income elasticity of demand for medical services is
close to zero.


The demand for medical  services to treat diseases affected by air pollution is

assumed to be price inelastic.  This assumption follows from the consumer's
                                 3
preference map discussed earlier.   This assumption  is particularly  relevant
 The price-consumption curve is the locus of utility maximization points
 achieved when nominal money income and the price of one good are held  con-
 stant, while the price of the other good is allowed to vary.  The locus of
 equilibrium points is obtained graphically in Figure 3 by letting JX rotate
 about J until a tangency point is obtained with each indifference curve.
2
 The income-consumption curve is the locus of utility maximization points
 achieved when the nominal money income of the consumer is allowed to vary
 and the prices of the two goods are held constant.  The locus of equilib-
 rium points is obtained graphically in Figure 3 by drawing other lines par-
 allel to JP and tangent to each indifference curve.

"The assumption of price inelastic demand is supported by empirical evidence.
 Other studiesx have shown price elasticity of demand for medical services
 (physician and hospital) to be highly inelastic [13, pp. 66-67, 72-76].


                                    15

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to the Kaiser data.  The main cost of participating in the system is the insur-
ance premium of a fixed amount.  In many instances the premium is paid by  the
employer.  Hence, the costs to the Kaiser patient of using the system, in  addi-
tion to the insurance premium if he should pay it, are his private  costs of
time and transportation and some minimal charges for physician visits and  drugs.

The assumption of low income elasticity of demand for medical services  does not
deny the fact that certain amenities of medical care might be a  function of in-
come.  Kaiser's emphasis is to provide the necessary medical services to treat
an illness.  Conveniences not necessary for such treatment are not  provided.
For example, amenities such as the use of a private room, when a bed in a  ward
would afford the same medical services, are not obtainable at Bess  Kaiser  Hos-
pital in Portland.

Medical treatments for diseases associated with air pollution are not close
substitutes for non-medical consumption goods;  i.e., the cross-price elasticity
between medical treatment for these diseases and other commodities  is zero, or
near zero.  The acceptance of this assumption rests upon the nature of the dis-
eases being examined.  An assumption of zero cross-price elasticity does not
negate the fact there might be treatment substitutes within a bundle of treat-
ments used to treat a disease incident.  However, once a treatment  method  is
decided upon, a minimum amount is required and changes in the prices of other,
non-medical goods will not affect the quantity of medical services  purchased.
This implies that shifts in the demand for medical care used in  treating dis-
eases affected by air pollution will be minimal as the prices of other goods
change.  Again, this assumption is not inconsistent with the Kaiser data.

With a prepaid medical system where, in many instances, the insurance pre-
mium is paid by someone other than the patient, the price of medical services
Empirical evidence on relationship between income and physician  services  con-
 sumed has been found which, to some extent, supports this  assumption.   Ander-
 son and Benham [2] found income elasticities, using permanent  income  and  taking
 other variables into account (demographic characteristics  and  preventive  care,
 among others) to be fairly low (less than 0.30).  By substituting  the  quantity
 of physician services consumed for the monetary outlay  (dollar expenditure by
 the consumer) on the same services, they found income elasticity to be as low
 as 0.01 [2, p. 90].  The measures of elasticity differ because of  free medical
 care provided at low, or no cost to poorer consumers.
                                    16

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and the patient's income play a minimal role in his consumption of services.
The assumptions with respect to price, income, and cross-elasticities of demand,
backed to some extent by empirical evidence from other studies, allow the follow-
ing argument to be made.  The consumption of medical services in the treatment
of certain diseases is not affected by the price of the services or the patient's
income, regardless of the sources from which care was received.  Hence, the use
of a prepaid system such as Kaiser's can be used to approximate the medical costs
of certain diseases associated with air pollution, and the estimates derived
will be representative of other medical systems.

Before closing the discussion on the theoretical model, it is important to empha-
size that the preference maps in Figures 1, 2, and 3 are based upon a prescribed
set of assumptions.  The maps are drawn to explain why a hypothetical consumer
would seek medical care.  This does not deny the fact that a person having a
disease affected by air pollution may not seek medical care and, hence, have a
preference map quite different from that described.  While such occurrences can
result in social costs (through value of production foregone, etc.), no demand
for medical services is placed upon the system.  These types of incidences and
costs are not accounted for within the present model.

A Broader Framework of Analysis
In order to estimate the effect of air pollution on the consumption of medical
services, account must be taken of some other conditions which could influence
the consumption of medical services and disease incidence rates.  These can
be broadly grouped into socioeconomic-demographic variables and meteorological
phenomena.  This section expands on the graphic presentation given above, and
examines such variables.

The Kaiser membership contains N people.  On a given day (j) there is a
level of air pollution which is assumed (for illustrative purposes) to be higher
than the previous day (j-1).  The effects of air pollution on health, and the
 This section has been formulated with the Kaiser data base specifically in
 mind.  However, with some modification, the concepts illustrated have applic-
 ability to other medical systems.
                                    17

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hypothesized increase in demand for medical services on day j, or shortly there-
after, can show up in two ways.  Fach establishes a testable hypothesis about
air pollution effects on health:  (1) deterioration in air quality can increase
the severity of the disease (i), requiring additional, and perhaps more intense,
medical care beyond that which would normally be incurred;  and (2) increases
in air pollution can precipitate an increase in the number of contacts with
the medical system per certain disease categories.

The general framework to be developed for testing the first hypothesis is speci-
fied  in Equation (1).  The other explanatory variables needed to isolate the
effect of air pollution on health are also indicated.

                    z«k= h(V V s«k>                      (1)

where    I... = an index of medical services consumed (inpatient and
           ijfc                                     t-v,
                 outpatient) for treatment of the i— disease (per dis-
                 ease incident or episode) resulting from exposure to
                 air pollution on the j— day for the k— person;

           A., = a measure of air quality on day j for the k— person;

           W , = a measurement of meteorological conditions on day j
            J             th
                 for the kr1— person;

          S  , = the socioeconomic-demographic characteristics of the
                 k— person, on the j— day of exposure, for the i—
                 disease;  and (i » 1, •••, n); (j = 1, •••, m);
                 (k = 1, •••, £).

Index of Medical Services - An index of medical services consumed (I) would
overcome some of the inherent disadvantages incurred by using dollar expenditures
  It is recognized in the formulation of this model, and all other models  to
  follow, that there can be lags of several days between the onset of disease
  (i) and exposure to air pollution or meteorological conditions.  While the
  lags are not specified within the definitions of the variables, the potential
  for them to exist is understood, and is explored in the statistical analysis.
                                    18

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for medical services.  The index would be based on physical quantities of med-
ical services consumed, would permit aggregation of different kinds of medical
services, and would reflect the intensity of medical services  used to treat
the disease state.  The index, if constructed properly, would more adequately
reflect the quantity of medical services consumed than would dollar expendi-
tures on medical services, because of variations in fees charged for services
performed, and the availability of free medical care to some patients.

Air Quality - The possible effects of a deterioration in air quality (A) on the
demand for medical services are many.  Exposure to most pollutants in sufficient
concentrations and for long enough time periods can result in harmful physio-
logical effects on the human body.  This presentation will give a brief summary
of some of these effects.
Particulate matter can affect human health by its chemical composition and size.
The particle may be intrinsically toxic due to its innate chemical and/or phys-
ical characteristics [59, p. 141].  For example, sulfur dioxide, when absorbed
on particulate matter, can impair lung tissue [41, p.  37].  Particles smaller
than two or
[41, p. 33].
                         2
than two or three microns  can penetrate deep into the respiratory system
A number of recent laboratory and clinical studies have led to a concern that
subtle cardiovascular and central nervous system effects may be associated with
elevated levels of carbon monoxide in the ambient air [62, p. 9-1].   Photo-
chemical air pollution can cause eye irritation [1, p. 96] and aggravate res-
piratory diseases [64,.p. 9-30].  Hydrocarbon air pollutants, which  enter into
and promote the formation of photochemical smog, have been associated with eye
irritation.  Aldehydes, also part of photochemical smog reactions, have been
shown to irritate the eyes and upper respiratory tract [63, p. 7-27].

Sulfur dioxide, at high enough concentrations, irritates the upper respiratory
tract [41, p. 37].  A significant correlation has been shown between mortality
 For a given disease there may be several disease states, each state differen-
 tiated by its relative degree of severity.  The intensity of medical treatment
 used in treating each state is dependent upon the severity of that state.
f\
 A micron is approximately 1/25,000 of an inch [61, p. 1].
                                    19

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resulting from chronic bronchitis and sulfur dioxide in England  and Wales
[41, p. 69].

Meteorological - Meteorological conditions  (W) can act independently of,  as
well as in conjunction with, air pollution  to place additional stress on  the
body, and possibly increase the consumption of medical services.  Temperature
and humidity have an unquestioned effect on health [8, p.  200],   Extremes of
temperature can place strain on the body and nervous system;  prolonged cold
spells can contribute to exhaustion [32]; cold temperatures can  decrease  mucous
transport which, by means of the cilia, is  one of the main methods of cleansing
airborne matter from the lungs [29].  Winter, weather fronts, and fog are re-
lated to the onset and increased severity of chronic bronchitis  [42, p. 11],
Exposure to cold, fog, or smog may need to  be avoided by asthmatics [42,  p. 64].
Low temperature, low humidity, a wide range in barometric  pressure, and wind
have been shown to be associated with the daily prevalence of common cold and
cough symptoms [9, p. 524].  In another study, temperature (on the day the ill-
ness started, or a few days prior) seemed to be highly associated with upper
respiratory disease incidence  [49, p. 738],

Intense radiation can lead to heat stroke;  intense cold can increase pulmonary
disease [18, pp. 80-81],  Many physicians believe that shortness of breath, in
those prone to heart attacks, is increased  during spells of hot, muggy weather,
and that fatigue worsens in foggy weather [36, p. XIV],  It was  found in  the
Netherlands that the highest mortality from arteriosclerotic  heart disease occurs
during the coldest months of the year (January and February)  [50, pp. 507-508],

Meteorological conditions can interact with air pollution  to  produce an environ-
mental situation which can produce adverse  health effects  [9],   These effects are
precipitated through chemical reaction of certain pollutants  with each other and
with certain environmental phenomena to produce new, and sometimes unknown, sub-
stances.  These chemical reactions are affected by the presence  of wind,  sun,
and humidity.  The best known example of these chemical reactions is the  pho^o-
chemical reaction between oxides of nitrogen and other organics  in the presence
of sunlight.  The effects on health of the  resulting photochemical air pollu-
tion, or Los Angeles smog as it is more popularly known, have already been docu-
mented.
                                    20

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Certain meteorological conditions can increase the build-up of air pollutants
in the environment.  Many past air pollution disasters  (Meuse Valley, Belgium,
1930;  Donora, Pennsylvania, 1948;  London, 1952 and 1962, among others) have
been characterized by prolonged, anticyclonic high pressure with a secondary
inversion  [7, p. 2],  An inversion acts as a lid, and retains below  it  all
pollution  emissions to the atmosphere, hence effectively retarding their disper-
sion.  Air pollutants build up and a minor air pollution problem can become a
severe episode if the meteorological conditions under which it was incurred
continue.

Chemical reactions of pollutants with each other, the interaction of pollutants
with certain meteorological phenomena, and the resulting creation of new pol-
lutants, or substantial increases in the amounts of pollution, will  usually be
reflected  through adequate air monitoring.  However, it is possible  that meteoto-
logical conditions and air pollution may act interdependently to adversely affect
a disease  state.  That is, the simple air pollution or meteorological condition
by itself, and in the absence of the other, may not adversely affect a  disease
state.  However, in combination with each other they may adversely affect the
disease condition.  Such combined effects would not be reflected by  single mea-
surements  of different air quality or meteorological phenomena.  Hence, in pur-
suing a study of this type, one should be aware of the interdependence  possibil-
ity.

Socioeconomic-Demographic - Other studies have shown that certain socioeconomic-
demographic variables (S) play an important role in the incidences of some dis-
eases affected by pollution [34, 37, 68],  It would seem that, to the extent
certain variables affect the health of the individual, they should also affect
the amount of medical services consumed in treating the disease.  Included
within (S) are several socioeconomic-demographic variables which would  appear
to be important in explaining the consumption of medical services and the indi-
vidual's state of health.

The smoking characteristics of the patient are expected to play an important
role in his consumption of medical care.  Heavy smoking can aggravate certain

                                    21

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respiratory diseases (emphysema and bronchitis,  for  example),  and place  addi-
tional stress on the body's cardiovascular system.

Cessation of cigarette smoking has been shown to be  associated with a decrease
in the prevalence of symptoms related to smoking (cough  and  shortness of breath,
for example) [65, p. 146].  Numerous other studies have  shown  the prevalence
of cough, sputum production, breathlessness  (dyspena), and chronic  bronchitis,
among other respiratory conditions, to be consistently higher  for ex-smokers
when compared to nonsmokers, and lower when  ex-smokers are compared to cigarette
smokers  [65, pp. 195-205].  Other studies (reported  on in the  Surgeon-General's
report on the health consequences of smoking) reveal that the  risk  of develop-
ing lung cancer decreases with smoking cessation [65, p. 11].   Most studies
indicate that after ten years of not smoking cigarettes, the ex-smoker's chances
of dying a premature death due to a smoking-related  disease  is less than that
                                                             2
for a smoker, and slightly greater than that for a nonsmoker.    The residual
effects  of past smoking habits can still aggravate certain respiratory diseases.
The more recent the ex-smoker stopped smoking, the greater the potential for
consuming more medical services.  The studies also indicate  that there are cer-
tain long-term effects of cigarette smoking, some of which are irreversible
[65, p.  145].

The occupation of the individual could affect the consumption  of medical care.
It is known that exposure to dusts can aggravate asthma  [27, p.  34] and  chronic
bronchitis  [42, p. 13].  Hence, it would seem that dustier occupations could
increase the consumption of medical services for individuals with a respiratory
ailment.

The residential history of the patient is also important.  Studies  have  shown
that the incidence and death rates from emphysema and cancer are higher  in cities
than in  the relatively non-polluted rural areas  [41,  pp. 71-72]. It is  argued
 •I                                                                             ^
 See particularly the following  [10, 27, 41,  42]  for  the  effects of smoking
 and air pollution on certain respiratory-cardiovascular  diseases.
 2
 Obtained from the American Cancer Society, and based on  its  slide  series, "The
 Time to Stop is Now."

                                    22

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that an Individual's state of health would be better if he had lived most of
his life in a rural area or other unpolluted environment.  The writers  feel
that, if this were the case, when a patient does become ill his disease state
would be less chronic, and require less consumption of medical services.

The incidence rates of certain diseases are more prevalent in certain age,
race, and sex groups [10, p. 13; 42, p. 39],  Hence, it is felt race, age, and
sex are three variables which could influence the demand for medical services
by an ill person.  If some diseases are more predominant in certain age, race,
and sex groups, then persons within these groups having the diseases might be
more acutely ill than individuals outside the groups who might also contract
the disease.  Also, with increasing age, the efficiency of the lung function
declines.  This is probably due to a decrease in elasticity of lung tissue, in-
creasing inflexibility of the chest wall, and, perhaps, to impairment of the
regulation of ventilation and the efficacy of cough [10, p. 16],  Such  aging
lung conditions would tend to impair the clearance of pollutants from the res-
piratory tract, which could result in increased aggravation of respiratory dis-
eases and an increase in the consumption of medical services.   Also, increased
aging could be one of the main causes of chronic obstructive pulmonary  diseases
            2
[10, p. 16],   Generally, one would expect an older person to have a poorer
                                                  3
state of health when compared to a younger person.

Another social habit which might affect a patient's consumption of medical ser-
vices is his drinking habits.  Excessive consumption of alcohol can affect a
person's state of health (emotionally, mentally, and physically).  Alcoholism
can play a role in pulmonary tuberculosis [42, p. 32],  Excessive consumption
of alcohol leaves a person's body in such a physical state that, if he  did be-
come ill, the consumption of medical services could be increased.  Alcoholism
                                                          4
has been extensively associated with respiratory problems.
 Conversation with Sheldon Wagner, M.D., Oregon State University - Environmental
 Health Unit; Good Samaritan Hospital, Corvallis, Oregon; August 25, 1971.
2
 Chronic obstructive pulmonary disease is a term which applies to those patients
 with chronic bronchitis, asthma, and anatomic emphysema who exhibit persistent
 obstruction of bronchial flow [10, p. 7].
3Sheldon Wagner, M.D., August 25, 1971.
^Sheldon Wagner, M.D., August 25, 1971.
                                    23

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It is felt that the more physically active a person  is,  the better his  state of
health.  This implies that when a person does become ill,  the disease case could
be milder, which would mean fewer medical services required in the treatment of
the disease incident.   There is a suspected association between lack of physical
exercise and coronary heart disease [20, p. 15].

The number of_ persons per room within the patient's  home would be an indica-
tion of crowding within the patient's environment.   Crowded conditions  could re-
sult in increased consumption of medical care.  More crowded  conditions lead to
increased physical and emotional strain being placed upon  the individual, and
the increased possibility of initial infection and reinfection with certain res-
piratory diseases (tuberculosis, for example) [42, p.  31.]

The income of the patient is included in an attempt  to describe the consumer's
ability to make expenditures, in lieu of medical expenditures or services, pre-
serving and bettering his state of health.  Examples of  such  expenditures would
be those made for sound housing and nutritional food.  One would expect the con-
sumer to consume more medical services if he is unable to make such expenditures,
and his state of health deteriorated as a result.

The marital status of the patient could explain some consumption of medical ser-
vices.  Available evidence indicates that single persons spend more total days
in the hospital than married persons [13, p. 60],  This  could simply be a reflec-
tion of the fact that the married person may have someone available at  home to
care for him when he is ill.  There may also be other reasons for a better health
                                                          r\
state of the married person compared to the single person.

The general framework specified in Equation (1) would afford  a test whether air
pollution increases can cause greater utilization of medical  services by increas-
ing the severity of a disease state.  To determine whether deterioration in air
 Sheldon Wagner, M.D., August 25, 1971.
2
 For the reader seeking a more detailed presentation of  these  reasons,  see [26,
 pp. 41-42].                                                                   '
                                    24

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quality can precipitate an increase in the number of contacts  with the medical
system for certain diseases requires another general model, which is illustrated
by Equation (2).


               niCj/NCJ = t(ICJ> V V                             (2>

     where     n.  . = the number of people in geographic area c making
                      contact with the medical system for disease i on
                      day j;

               N  .  = the total number of people living in geographic
                      area c on day j;

               A  .  = an average measure of air quality over geographic
                      area c on day j;

               W  .  = an average measure of meteorological conditions
                      over geographic area c on day j;

               S    = an average of socioeconomic-demographic character-
                      istics of people living within geographic area c
                      on day j; and

                      (c = 1, •••, p);  (i = 1, •••, n);  (j = 1, •••, m).
 Other studies investigating the effect of air pollution on health have tested
 whether air pollution precipitates an increase in the incidence of disease i.
 After further Investigation, incidence was discarded as a potential dependent
 variable, and the number of contacts with the medical system substituted in
 its place.  The reasons are as follows.  Incidence is defined as an expression
 of the rate with which a certain event occurs, such as the number of new cases
 of a specific disease occurring during a certain time period [11, p. 730],  The
 problem with incidence is that the disease must be a new case before it is meat-
 sured; i.e., the disease must be a new episode.  Many chronic and acute respira-
 tory diseases can be part of a continuing episode, and be affected by air pollu-
 tion such as to precipitate additional visits and/or contacts with the medical
 system.   Use of the incidence would not reflect those additional contacts and,
 hence, would inadequately express demands placed on the medical system as they
 might be affected by air pollution.  The problem is solved by using the number
 of contacts with the medical system, which includes not only new but continuing
 contacts for certain disease categories.
                                    25

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The Independent variables in Equation  (2) are expressed as  a mean over a geo-
graphical area (census tract, for example).  The  approach outlined in (2) offers
one method of seeing whether differences in air quality, meteorological, and
socioeconomic-demographic conditions can play a role  in people contracting dis-
ease i, irrespective of the amount of medical services  consumed per disease
incident.

The arguments for including the explanatory variables A.,  W  , and S   in
Equation  (2) are similar to the arguments given for their inclusion in Equation
(1).  The principal influence of A  ., W  , and S   in Equation (2) is that they
affect a state of health, hence making the patient more susceptible to certain
cardiovascular-respiratory problems.  Therefore,  A  , W .,  and S   are expected,
                                                  cj    cj        cj
with some exceptions discussed below, to have the same  causal  relationships on
disease incidences as A., , W , 9 and S  , had in the consumption of medical ser-
                       J K   JK       ij K
vices  in Equation  (1).

Several additional variables are included in S  ,  which  were not considered in
                                              cj
S.,,.  These variables would be expected to influence the contact rate with the
 IJK.
medical system (n.  ./N  ,), but would not necessarily  influence the consumption
of medical services (I.., ) per visit.  The variables are reading of medical lit-
                      1JK
erature, distance to the nearest clinic or hospital,  and a  measure of the hypo-
chondriac tendencies of the patient to contact the medical  system.

The reading of medical literature could explain differential information and
preferences toward recognizing the need for, and  in appreciating the desirability
of, seeking medical care.  Such reading would increase  the  patient's medical
awareness.  This would, in many instances, Imply  contact with  the medical system
and the consumption of medical services.  Even if medical services were not pro-
vided  to the patient, contact with the system, where  a  disease is positively
identified, would constitute a disease incident.  It  is expected that the increased
awareness of the patient to medical phenomena will be positively related to dis-
ease incident, particularly with respect to patients  having the cardiovascular-
respiratory problems with which this study is concerned.

Distance to the nearest hospital or clinic reflects,  in part,  the out-of-pocket
costs and inconvenience to the patient of obtaining medical care.  All Kaiser

                                    26

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clinics are located within  the  immediate  Portland area,   and the  hospital is
located in North Portland.  Hence,  it  is  quite  possible  that patients  living
in outlying areas would  substitute  (for Kaiser  services)  medical  services
closer to their place of residence.  Longer  distances  could  delay the  patient
from seeing the Kaiser doctor,  or not  seeing him  as  often.   Such  situations
would have direct bearing on  the contact  rate with the system.  Therefore, it
is expected that the farther  patients  have to go  in  obtaining medical  services
from Kaiser, the lower will be  the  disease incidence reflected  in the  Kaiser
     2
data.

The medical hypochondriac has a morbid fear  or  anxiety about his  health  state.
While it is highly unlikely that such  a mental  state will actually affect the
marginal consumption of  medical services  per visit,  it could affect  the  incident
rate because of the tendency  for the patient to contact  the  system more  often.
Hence, a measure of the  patient's tendency to contact  the system  at  the  first
sign of a perceived illness should  be  included  within  the analysis.

The framework specified  in  Equation (2) would afford a test  whether  air  pollu-
tion can precipitate an  increase in the incidence of certain diseases.   The
next section will specify the null  hypotheses to  be  tested,  and delineate the
statistical models by which they will  be  tested.

                 Specification  of the  Statistical Models
The first null hypothesis to  be tested is as  follows:
          Ho..:  Deterioration in air quality causes  no increase
                in the consumption  of  medical services per out-
                patient  contact with the  medical  system.

Equation (3) permits the  testing of this  hypothesis.
 One clinic is in Vancouver and one is in Beaverton  (see Figure 4 in Chapter V).
 The other three clinics are located within the Portland city limits.
2
 This would imply that as the out-of-pocket costs of using Kaiser facilities
 increase with distance, the demand for Kaiser medical services becomes more
 elastic.  However, demand for medical services as a whole would still remain
 inelastic because medical services from other facilities closer to the patient
 could be substituted for the Kaiser services.
                                    27

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         Yijk - ^O + 3lXlijk + 62X2ijk + 33X3ijk
              + *6X61Jk + e7X7ijk + Vsijk + 39X9i.1k +

              + Vllijk + P12X121Jk + ei3X13ijk + PlAXM±Jk +  £ijk

where    Y. .,  = index of consumed outpatient medical services for  disease
           J    i resulting from contact with the Kaiser system  on day  j
                by person k, converted to dollars.
        X     = age of the fc— person on day j who consumed outpatient
           3    medical services for disease i.

        X     = sex of the k— person who consumed outpatient medical
           3    services on day j for disease i (0 or 1 if the patient
                is male or female, respectively).

        X«. ., = marital status of the fc— person who consumed outpatient
           3    medical services for disease i on day j (0 or 1 if  the
                patient is not married or married, respectively).

        X, . ., = number of people in the fc— patient's household who con-
           •*    sumed outpatient medical services for disease i on  day  j.
                                         J.-L
        X-. ., = household income of the k— patient who consumed outpatient
           3    medical services for disease i on day j.

        X,. , = race (Negro) of the fc— patient who consumed outpatient
          13    medical services for disease i on day j (1 if Negro, 0
                otherwise).

        X^  ., = race (others) of the fc— person who consumed outpatient
                medical services for disease i on day j (1 if of another
                non-White race, 0 otherwise).

        X8iik = a 8reat deal of time and energy expended by the fc— patient,
                who consumed outpatient medical services for disease i  on
                day j, in being physically fit  (1 if a great deal of  time
                and energy expended, 0 otherwise).
X9iik
                some t±m& and energy expended by the k— patient, who  con-
                sumed outpatient medical services for disease i on  day j,
                in being physically fit (1 if some time and energy  expended,
                0 otherwise) .
 As will be explained in Chapter VI, in order to express the  effect  of air pollu-
 tion on health as an economic cost, the index was converted  to  dollar values.
 The conversions were undertaken in such a manner that, for the  most part, varia-
 tions in medical expenses would reflect direct variations in quantities  of medi-
 cal services consumed.

                                    28

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          X-0  . =  a measure  of the  frequency of alcohol consumption by
                    the  k— patient who  is  a heavy drinker,  and consumes
                    outpatient medical services for disease  i on day j.

          ^111'k =  an *n<*ex expressing  the cigarette smoking characteristics
                    of the  k— patient consuming outpatient  medical services
                    for  disease i on  day j.

          X...  , =  an index of occupational exposure to  job-related pollu-
                    tants by the fc—  patient consuming outpatient medical
                    services for disease i  on day j.

          ^131'k =  a measure  °f tne  ambient air pollution that the k—
                    patient, who consumes outpatient  medical services for
                    disease i, is exposed to on day j  (expressed as sus-
                    pended  particulates, micrograms per cubic meter per
                    day).

          X.,.., =  a measure  of the  meteorological conditions that the  fc—
              •*     patient, who consumes outpatient  medical services for
                    disease i, is exposed to on day j  (expressed as degree
                    days -  the absolute  difference between the average daily
                    temperature and 65°  F).

             e.., =  a random error term, about which  the  usual statistical
              3                          JL
                    assumptions are made,  and

                    (i = 1, -•-, n);   (j =  1, •••, m); (k = 1, «•-, I).

3_, 3-,,  *•', 3,, are the parameters  to  be  estimated.


The second hypothesis to be tested by this study is  as follows:

             Ho_:   Deterioration in  air quality does  not precipitate an
                    increase in the number  of contacts with  the medical
                    system  per disease category.
This hypothesis, using the framework  specified  in Equation  (2),  can not be tested
directly because of an error made while  specifying  the  statistical model.   The
independent variables were specified  (per  each  census tract)  only  for Kaiser mem-
bers who contacted the system.  More  specifically,  the  number of Kaiser members
at risk for each census tract was known, and  could  be included within the  depen-
dent variables.  However, the socioeconomic-demographic characteristics were
 See [12, p. 17] for a detailed presentation of  these  assumptions.
                                    29

-------
known only for Kaiser members from each census tract who contacted the  medical
system.  That is, the remaining socioeconomic-demographic characteristics  of
the population at risk were not included.  Hence, a test of  the model specified
in the format was meaningless.  The computer and programming expense  to con-
vert the error was prohibitive.

However, there did appear to be an alternative method of re-specifying  the model
which provided the possibility of testing the hypothesis indirectly.  As pre-
viously mentioned, the socioeconomic-demographic characteristics of the popula-
tion at risk could not be determined easily; however, the number of people at
risk per census tract was known.  Hence, an alternative to Equation (2)  (Equation
5) was specified.  Within its dependent variable are included  the  number of con-
tacts per disease category which resulted in the consumption of medical services
per census tract, and the number of people at risk per census  tract.    The in-
direct test of the second hypothesis will become clearer with  specification of
the alternative model.

The dependent variable (vic.) of Model (5) is defined by (4) as follows:
                                 1
                                Jl Yic^k
                         Yic:i -    NC.    •                           <4>
          i
where     1  Yic-k = the summation of the index of consumed  outpatient
         k=l    -1    medical services for disease i for all  k  persons
                     in census tract c on day j, converted to  dollar
                     values.

               N. = the total number of Kaiser respondents  residing  in
                     census tract c on day j; and

          (i = 1, •••, n);  (c = 1, -.., p);  (j = 1, ..., m);   (k =  i, ..., £).
This leads to the specification of the statistical model (5).
 As will be discussed in Chapter IX, even if the model to  test  the  second hypo-
 thesis had been specified correctly, it could not have been  tested because
 there were not enough observations per census tract.
                                    30

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          Yicj = gO + 3lXlicj + 32X2icj + 33X3icj + 34X4icj  + 35X5icj

               + 36X6icj + 37X7icj +  38X8icj +  39X9icj  + 310X10icj
where     X. .  . = the average age of patients  consuming  outpatient medical
                  services for disease  i  from  census  tract  c on day j .

          X« .  . = the percentage of the female sex  consuming outpatient
              •*   medical services for  disease i  from census tract c on
                  day j.

          X,.  . = the percentage of married  patients  consuming  outpatient
                  medical services for  disease i.  from census tract c on
                  day j.

          X, .  . = the average number of people per  household in census  tract
                  c  for individuals consuming  outpatient medical services
for disease i on day j .

the average household income in census tract c for indi-
vi duals con
i on day j.
           j. .  ,
              •*   vi duals  consuming outpatient medical  services  for  disease
          X, .  . = the percentage of non-white patients  in  census  tract  c
                  consuming outpatient medical  services  for  disease  i on
                  day j.

          X?.  . = the average  frequency of alcohol  consumption by heavy
                  drinkers in  census  tract c who  consume outpatient  medical
                  services for disease i on day j.

          XR   . = the average  smoking index of  patients  in census tract c
             C-1   who consume  outpatient medical  services  for disease i
                  on day j.

          Xq.  . = average index of occupational exposure to  job-related
            1C^   pollutants for patients from  census tract  c consuming
                  outpatient medical  services for disease  i  on day j.

         Xlf).  . = the average  measure of meteorological  conditions for
            1C-'   patients consuming  outpatient medical  services  for dis-
                  ease i from  census  tract c on day j (expressed  as  degree
                  days - the absolute differences between  the average daily
                  temperature  and 65° F) .

         X--   . = an average measure  of ambient air pollution for patients
             CJ   consuming outpatient medical  services  for  disease  i from
                  census tract  c on day j (expressed in  suspended particu-
                  late, micrograms per cubic meter  per day) .

                                    31

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          e  .  - a random error term, about which the usual statis-
             3    tical assumptions are made; and
                 (i = 1, •••, n); (j - 1, •••, m);  (c -  1,  •••,?),

and £0, 3,, •••, 3,, are the parameters to be estimated.  Y     is  as  previously
defined in (4)  above.

The dependent variable in (5) is expressed as the per capita  index of consumed
outpatient medical services over census tract c on  day j, converted to dollar
values.  Three separate items can influence the dependent variable in (5):
(1) the consumption of outpatient medical services  per visit  (Y^.^, in (3));
(2) the number of contacts with the Kaiser system which  result  in  medical ser-
vices being consumed; and (3) the number of people  at risk per  census tract.
More specifically, an increase, resulting from air  pollution, in the  number of
contacts consuming medical services could cause the per  capita  index  consumed
of outpatient medical services (Y. .) to increase (the number of people at risk
and the amount of medical services consumed per visit assumed constant).  Simi-
larly, an increased consumption of medical services resulting or associated with
air pollution would also increase (Y. .) (the number of  people  at  risk and the
number of contacts with the Kaiser system assumed constant).  It is highly prob-
able that both of these effects operate together.

Assuming a significant association between air pollution and  the per  capita index
of consumed outpatient medical services in (5), one could not determine whether
the association would be caused by an increase in the number  of contacts with
the medical system or an increase in the consumption of  medical services per
contact.  However, the null hypothesis associated with (3) permits a  test on
the consumption of outpatient medical services per  visit and  air pollution.  If
this hypothesis should not be rejected, and there is an  association between air
pollution and the per capita index in (5), then it  could be Implied that there
is an association between air pollution and the number of contacts made with the
Kaiser system.

The next four chapters deal with the collection, compiling, and processing of
data for the variables in Models (3) and (5).  Note that some of the  socioeco-
nomic-demographic variables discussed in the section titled A Broader Framework

                                    32

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of Analysis were not included in the statistical models.  These variables were
excluded because responses to questions eliciting the data were not specific
enough to be included in the analysis.  These variables are residential history,
reading of medical literature, medical hypochondriac tendencies, and the distance
to the nearest clinic.
 See [26,  pp.  111-114]  for a more detailed discussion on this  topic,

                                    33

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                  V.  A DESCRIPTION OF THE STUDY AREA
                           AND THE KAISER PLAN

                             The Study Area
The area of study centers within the Portland Standard Metropolitan Statistical
Area (S.M.S.A.), with a population of 1,009,129  [53, pp.  39-175].   The S.M.S.A.
is made up of Clackamas, Multnomah, and Washington Counties  in Oregon, and Clark
County in Washington.  The study area is enclosed in the  dashed lines in Figure
4.  The study area boundaries were determined by the availability  of air pollu-
tion data and proximity to the Kaiser medical facilities  in  Portland, Beaverton,
and Vancouver.  The study period was 1969 to 1970.

Portland, Oregon, population 381,927 [53, pp. 39-175], is the largest city in
the S.M.S.A. and Oregon.  The city is located in the northwestern  part of the
State, astride the Willamette River near its confluence with the Columbia River.
Portland is an important trade, transportation, and manufacturing  center for the
Pacific Northwest.  Racially, the S.M.S.A. is mostly white.   The minority races
are composed mostly of Orientals and Negroes [46, p. 394],

Portland is economically diversified.  A number of national  companies have
branches located there  [46, p. 395],  Food processing and related  agricultural
production, textiles, lumber and wood products including  pulp and  paper, chemicals,
aluminum and other metal fabricating plants, shipping  [46, p. 395], and tourism
are Portland's major industries.  Tourist visitation is particularly heavy in
Portland during the summer, primarily because of the city's  convenient locatioa
with respect to many seasonal recreational opportunities  [58] and  its annual
Rose Parade held in early June.

Portland (including Vancouver) is located about  60 miles  from the  Pacific Ocean,
and is enclosed by two mountain ranges, the low  Coast  Range  to the west and the
Cascade Range to the east.  Each range is approximately  30 miles from the city.
The Cascade Range provides a steep, high slope for the orographic  lift of moisture-
laden westerly winds and consequent heavy rainfall on  the west side of the range.
The Cascade Range provides a barrier, containing the interior Columbia Basin with

                                    34

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  r
  /V
 A
 ^
        h
        to
        5
^
^
TV
A
                                 Columbia River
                       Scappose  (x  ^
                                \   i
OREGON
              X^ancouver
              ^\>-^   cov*8^
             /  For
    ,  ,   /^X     v  \         .  X (Troutdale
  Hillsboro'       X    \        X   \
          \   Beaverton I  Gresham   \

          \           /X....
\          / A
 V        Xl  Milwaukie

LakesOswego
                                                        \


                                                        ,1
                                      x/ Sandy

                            Oregon City /
                        Willamette

                           River
                                          ^
     Figure 4.  The  study area.
                                     35

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its continental air masses.  While most air flow in the Portland area usually
is northwesterly in spring and summer and southeasterly in  fall and winter,  there
are occasional movements of dry continental air from  the east  to the west through
the Cascade passes and the Columbia Gorge.  When this occurs,  extreme high and
low temperatures are experienced in the Portland area [58],

With the exception of these temperature extremes, Portland  has  a mild winter rain-
fall climate.  Average annual temperature is 52.9° F.  Annual  rainfall averages
37.18 inches, with 88 percent of the annual total occurring between the months
of October and May.  On the average, there are only five days  each  year with
measurable snow.  Incursions of marine-tempered air are a moderating influence
to any temperature extremes; i.e., extremes of heat or cold last only a few  days
before being broken [58].

The region's greatest area-wide pollution problem is suspended  particulates
[4, p. 4].  Periodic inversions during the fall and winter  months (September
to February) can trap these particulates for several days at a  time,  causing
visibility and other problems.  Sulfur dioxide, photochemical smog,  and nitrogen
dioxide are not presently a serious problem in the Portland area [4,  pp. 3-4].
In many instances cloud cover rules out a photochemical smog problem.   Only  down-
town Portland has a problem with pollutant gases, mainly carbon monoxide.  While
there is some heavy industry in Portland, pollution problems from these sources
are usually localized.

The meteorological and air pollution problems of the Lower  Willamette Valley,
containing Lake Oswego, Milwaukie, Oregon City, Hillsboro,  Beaverton,  Sandy,
and the southern part of Portland, are similar to the Portland-Vancouver area.
Portland's suspended particulate problem extends southward  from Portland to
the Valley.  The wind flow patterns in the Valley are somewhat  simpler than
they are within the Immediate Portland-Vancouver area, due  primarily to the
lack of a Columbia River Gorge effect.  Air flow patterns within the Valley
are primarily channeled by the Coast and Cascade Ranges.  Winds are predomin-
antly from the north in summer and from the south in winter.  The sea breezes
are also an important moderating force on temperatures in the Valley [43,  p. 159].
                                    36

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                  Characteristics of the Data Provided
                      by the Kaiser Medical System

The Kaiser System
The Kaiser-Permanente Medical Care Program is a non-profit group insurance plan
which provides comprehensive medical care to its members.  Kaiser is one of the
oldest (established in 1938) and largest (2.2 million members) prepaid medical
plans in the nation [66, p. 1].  The Plan operates on a regional basis in Califor-
nia, Oregon, Hawaii, Colorado, and Ohio.  It has 2,100 doctors, who represent
nearly every medical specialty [66, p. 1],  The physicians are organized into
a medical group, a partnership, which contracts with the Kaiser Foundation
Health Plan to provide medical services.  The monetary compensation to the
physicians is usually competitive with what could be earned in private practice.
Also, to the extent each region stays within its operating budget, the members
of the medical group receive a year-end bonus [66, p. 21],

The emphasis of the Kaiser system in providing medical services has been to
eliminate unnecessary health care  and to concentrate on outpatient care.  Kai-
ser's inpatient admissions, and average length of hospital stay, are well below
                     2
the national average.
 unnecessary health care, from Kaiser's viewpoint, is providing medical services
 to the patient which are of little medical value to him.  For example, the use
 of a private room in a hospital, when a room of multiple occupancy would serve
 just as well;  or dispensing to the patient services on an inpatient basis
 when an outpatient visit to a clinic would accomplish just as much.
2
 The national average in 1967 for hospital admissions averaged 137.9 a year per
 1,000 people per year.  The average length of hospitalization was 6.65 days for
 Kaiser members, compared to 7.8 days for the national average [66, p. 21],  As
 a comparison, the Oregon Region Kaiser Foundation Health Plan's average length
 of stay for hospitalization of health plan members was 5.2 days in 1970;  the
 average hospital admissions per 1,000 members was 87.  (Information obtained
 from Marilyn McCabe, Special Research Assistant, Kaiser Health Services Re-
 search Center, Portland, Oregon.)
                                    37

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The Oregon Region Kaiser Foundation Health Plan was  established in 1943.   In
1971 the plan provided prepaid, comprehensive medical  care to approximately
146,000 members.1  The plan is sold mainly to organized groups.

From a socioeconomic standpoint, the membership of the Oregon Region is quite
diverse.  Most occupational-socioeconomic groups are represented within the mem-
bership [15, p. 938].  It has been estimated that 15 percent of Portland-Vancouver
residents are enrolled in the plan [17, pp. 298-299],  and receive most of their
medical care through Kaiser's hospital and six clinics.   Kaiser also provides
medical services to non-members on a fee-for-service basis.

The partnership of physicians contracting with the Kaiser Foundation Health Plan
to provide medical services to the membership is known as the Permanente Clinic.
The Permanente Clinic is paid a negotiated fee per health plan member.  The fee
is paid whether the member seeks medical care or not.   The income of the Perma-
nente Clinic is then distributed to the member physicians in a manner determined
by them [15, p. 938].

The socioeconomic-demographic and medical data for this  research came from the
Kaiser Health Services Research Center.  Kaiser Research is  a separate division
within the Kaiser system.  The Center is federally funded.  These monies provide
a base of funds which the Center uses to attract qualified people of different
professional backgrounds.  These professionals are conducting research on ways
of improving and making more efficient the delivery  of health services.

There were several advantages in using the Kaiser system for this research:  (1)
the membership was large enough to provide a sufficient data base;  (2) the
population base at risk for medical services was continually known;   (3)  the
Kaiser system provided a total range of medical services, from mental health to
drugs;  and (4) the Kaiser data system was readily amenable to use by modern
data processing equipment.
T:his was the membership for the Oregon Region  as  of  December 31,  1971.  The
 information was obtained from Marilyn McCabe,  Kaiser Health Services Research
 Center.
                                    38

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The Five Percent  Sample
The objectives and  intent of  studies  conducted by Kaiser  Research were  to  explain
the determinants  of medical care utilization.  To accomplish  these  goals a 5  per-
cent, ongoing, random sample  was drawn  from  the  total membership in the Fall  of
1966.  A comprehensive system for  computerizing  the medical information for the
sample was developed.  The outpatient medical data for  this study were  obtained
from this sample.   This  section discusses  the drawing of  the  sample,  and its
socioeconomic-demographic characteristics.

All of the membership records of the  Kaiser  Health Plan were  recorded on magnetic
tape for ease of  computer processing.   Each  family, and member within that fam-
ily, were identified by  a unique number called the Health Plan Identification
Number (H.P.I.D.).  This provided  a reliable sampling framework for Kaiser to
draw a random 5 percent  sample of  family units.

The original sample was  drawn from a  list  of people eligible  for Kaiser Health
Plan services on  September 1,  1966.   Each  month  since then a  5 percent  random
sample of all new families joining the  Health Plan have been  added  to the  sample
[17, p. 300],  Once an individual  is  chosen  for  the sample, he will always be a
member of the sample, even if he should become a non-member of the  Health  Plan.
Hence, in the aggregate, the  sample was actually larger than  5 percent  of  the
membership at any point  in time.   Continuous medical care utilization is recorded
whenever members  of the  sample use or contact the Kaiser  System.  The original
sample had 1,487  member  family units, with 4,123 individuals.  By July  1968,
2,311 families and  6,514 individuals  were  sample members  [17, p. 300],

The Kaiser 5 percent sample was designed to  be representative of the  Kaiser member-
ship at any point in time [17, p.  300],  During  1967, 96  percent of the sample
members resided in  the Portland S.M.S.A.   Sixty-four percent  of the members
 A subscriber family may not necessarily include all the members of  the  family;
 that is, some members of the primary family may not be members of the Kaiser
 Health Plan.
 See the following citation for a more complete presentation of this sampling
 procedure [22].
                                    39

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resided in Multnomah County [17, p. 302].  There was no  reason  to  expect  these
distributions to change materially between 1967 and the  beginning  of  the  study
period.

The Kaiser membership's representativeness of the population  in the S.M.S.A.  is
an unanswered question.  Using 1960 census data, some comparisons  of  the  Kaiser
membership to the population of the S.M.S.A. have been made.  Four percent  of
the total membership was non-white, compared with 3 percent for the S.M.S.A.
The Kaiser Health Plan membership had slightly more members in  the under-25 age
group and had slightly fewer in the over-65 age group than the  S.M.S.A.  [17,
p. 302].1  Dr. Merwyn Greenlick, Director of Kaiser Health Services Research
Center, felt the Kaiser membership was not significantly different from  the Port-
land S.M.S.A.  However, since the Kaiser membership was not randomly  drawn  from
the S.M.S.A., he was wary of making inferences from membership  or  sample  results
               2
to the S.M.S.A.

The Kaiser Household Interview
One of the specific aims of Kaiser Research was to examine association between
socioeconomic-situational background characteristics and the  consumption  of med-
ical services in different disease states.  It was hypothesized that, for cer-
tain disease situations, different background characteristics were important
determinants of medical care utilization [17, p. 299],  To accomplish its re-
search objective, Kaiser developed a household interview survey to collect  socio-
economic-demographic and other data from members of the  5 percent  sample.  It
was from this survey that the socioeconomic-demographic  data  for use  in  this
study were obtained.
 Some other general characteristics of the Kaiser 5 percent  sample  membership
 which were not compared to the S.M.S.A., showed that 81 percent were  Protestants
 and 16 percent were Catholic.  Eighty-one percent of the  sample subscribers were
 married.  Eighty-seven percent of the subscribers were employed, with semiskilled
 (24 percent) and clerical sales (23 percent) appearing to be  the main occupational
 categories [17, p. 302].
2
 Conversation with Merwyn R. Greenlick, Ph.D.; Director, Kaiser Health Services
 Research Center, Portland, Oregon, November 22, 1971.

                                    40

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The  questionnaires were  developed after a review  of  the  sociological  and social
psychological  literature on  health and  medical  care.   Information was gathered
on four  types  of variables which  were thought by  Kaiser  to  primarily  affect  the
need for medical care:   (1)  bio-social  factors, such  as  age and  sex;   (2)  situa-
tional or physical environmental  conditions, such as  type and  place of work;
(3) sociocultural agents, such as drinking, smoking,  or  conventional  health
procedures;  and (4) psychological stress factors, socially and  environmentally
produced, including financial problems  and family strife.   Three types of  vari-
ables thought  to affect  demand for the  consumption of medical  services were  in-
cluded:  (1) sociocultural factors, including the valuation the  individual
places on health, the determination of  normal health  states, and opinions  on
proper sources of medical care;   (2) social components,  such as  pressure result-
ing from interaction with family  members, friends, and colleagues at  work;   and
(3) psychological elements,  such  as sick-role orientation,  optimism or pessimism,
or self-acceptance [16,  p. 3],

The questionnaire survey was administered to each eligible  Kaiser Health Plan
subscriber, or subscriber and covered spouse, in  the  5 percent sample, beginning
February 1970  and terminating August 1971.  Kaiser processed and accepted  a total
of 2,409 interviews.

The questionnaires were  administered separately,  but  simultaneously,  to  husband
and wife in two-parent families.   A different, but related, questionnaire was
administered to each spouse  (questionnaires A and B).  This interviewing tech-
nique was utilized because it was felt  some data  would be more reliable  and valid
if obtained separately from  the husband/father and wife/mother.  Other data,
especially that of a subjective nature  (such as perceptual-attitudinal data),
must be  obtained from each person independently [17,  pp. 300-301].  In a one-
parent or single-subscriber  household,  a  C questionnaire was given which con-
tained all the questions  of  the A-B set.  On the  average, it took one  and  one-
half hours to administer the questionnaire.
njhpublished Kaiser paper titled: West Coast Community Surveys Household Inter-
 view Sample Statistics, October 1, 1971.
                                    41

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                      VI.  COMPILING THE MEDICAL DATA

                          Inpatient Medical Data

Since 1965, detailed socioeconomic and medical information has been obtained
on each inpatient admission to Bess Kaiser Hospital.  These data were stored
on magnetic tape, and comprised 65,000 records.  Annual inpatient admissions
ran approximately 9 percent of the total Kaiser membership in any given year
of the study period.  It was originally intended to include in the analysis
data from the inpatient records of the 5 percent sample members.  However,
several difficulties arose:  (1) the type of laboratory and radiology procedures
performed were not coded in sufficient detail to be compatible with the outpatient
data;  (2) major coding errors committed by Kaiser personnel would have necessi-
tated going back to the raw data in order to correct them;  (3) the inpatient
service records of some patients were recorded under multiple H.P.I.D. numbers;
and (4) two "International Classification of Diseases, Adapted" editions  (I.C.D.A.)
were used to index admitting and discharge diagnoses and surgical procedures.
The I.C.D.A. numbers of the two editions were not comparable.  As the inpatient
medical data were to be related to socioeconomic data obtained from the house-
hold interviews of the 5 percent sample, and as it appeared that fewer than 50
hospital discharges per year were made of patients in the relevant disease cate-
gories who were members of the 5 percent sample, the decision was made not to
commit the cost and effort required to overcome the above obstacles.  Therefore,
only outpatient medical data were used in the study.
 The I.C.D.A. is a code used for classification of morbidity  (disease)  and
 mortality (death) information for statistical purposes.  The  I.C.D.A.  is
 periodically revised.  Prior to January 1, 1970, Kaiser used  the  1962  re-
 vised edition of the I.C.D.A. [40] for indexing inpatient  records;   the eighth
 revision of the I.C.D.A. [39] has been used since January  1,  1970.   The 1968,
 edition of the I.C.D.A. has served as the basis for coding diagnostic  data
 for the official morbidity and mortality statistics in the United States
 [39, pp. IX-X].  See [39, pp. IX-XXXII] for a complete history  on development
 and use of the I.C.D.A.
                                    42

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                          Outpatient Medical  Data
All outpatient medical  services  consumed  by  the  5  percent  sample were  coded and
recorded by Kaiser's medical  record technicians  on forms specifically  prepared
for computer processing.  All contacts with  the  Kaiser Health Plan  system by the
sample members, including telephone calls  and  letters, have been continuously
recorded on magnetic tape since  January 1967.  Data recorded for each  contact
include, among others,  date,  time, place,  and  type of service.  The major symp-
toms, and duration of these symptoms, were recorded for each presenting and
associated morbidity.   The medical procedures rendered, including  laboratory
and X-ray, were coded in detail  for each  outpatient visit.

With one exception, the presenting and associated  morbidities were  coded  accord-
ing to the 1962 revised edition  I.C.D.A.  [40], as  supplemented and  adapted by
Kaiser.  The exception was the use of symptom  codes  (called "T codes") developed
by Kaiser to be used in cases where a disease  condition was not diagnosed before
patient care terminated.  Symptoms represented the final diagnosis  for 10  percent
of the patients utilizing outpatient services  at Kaiser [23, p. 249],  Kaiser,
finding symptoms codes  in the I.C.D.A. not extensive or unique enough for many
disease states, developed its own symptoms classification system.   These  codes,
which facilitate ease of coding  and analyzing presenting and associated morbidity
data, were developed in the following manner.  Each organ system was assigned a
single block of numbers.  Additional number groups were given to non-specific and
psychiatric symptoms.  Since the I.C.D.A.  had some  symptom codes, Kaiser used the
letter "T" to distinguish its codes from the I.C.D.A.

The coding system used to identify each medical procedure rendered was an adapta-
tion by Kaiser of the 1964 California Relative Value Fee Schedule (C.R.V.S.),
 In the event care was given for two or more morbidities during the same contact
 with the system, the morbidity that provoked the contact was identified as the
 presenting morbidity, and the others as associated morbidities.  The use of
 the term "associated" did not necessarily mean that the diseases were clinic-
 ally linked to each other.  The term "associated morbidity" means only that
 the diseases were associated in time.  Nor should the distinction between pre-
 senting and associated morbidities be linked with the seriousness of either
 disease; a presenting morbidity could be minor, whereas the associated mor-
 bidity could be a major disease [28, pp. 16-17],
                                    43

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[6],  Each medical procedure performed on the patient was translated  into  a
unique four-digit number for coding purposes.  In essence, then,  the  Kaiser
medical data system was established in such a way that most medical procedures
rendered per outpatient contact could be associated with a specific disease.

However, there were two major shortcomings which existed with the outpatient
data.  As with the inpatient data, the consumption of drugs was not coded  for
the five percent sample during the study period.  Also, if a patient  received
medical services outside the Kaiser system, such services were not included in
the Kaiser data.

The outpatient medical data were received from Kaiser on two magnetic tapes.
The tapes were ordered by H.P.I.D. number and date of service.  The tapes  con-
tained 145,000 separate outpatient medical records on the five percent sample
for 1967-1970.  These tapes were searched by H.P.I.D. number to obtain only
medical records for which socioeconomic data were available from  the  household
          1                                                       2
interview.   A new tape containing 103,000 records was generated.

A thorough search was made of the I.C.D.A. and T-Codes [24] used  by Kaiser to
prepare a list of over 500 diseases and symptoms which were thought to be  aggra-
                                            3
vated by, or associated with, air pollution.   The codes were grouped into the
eight categories shown in Table 1.
Tlach interview was identified by the member's H.P.I.D. number at the time of
 the interview.  All members of the subscriber's health plan were identified
 by unique person numbers (part of the H.P.I.D. number).  These numbers  allowed
 data from the household survey to be attached to the member's medical records.
2
 A precaution had to be taken to discover H.P.I.D. numbers that had  changed
 since the household interview date.  The problem occurred, for example, when
 separations, divorces, or name changes took place.  It was highly probable
 with such changes that covered dependents stayed under the old H.P.I.D. num-
 ber.  Hence, in creating the new medical tapes, medical records were accepted
 under both H.P.I.D. numbers.
3
 Appreciation is expressed to Sheldon Wagner, M.D., Head, Oregon State University
 Environmental Health Unit, Good Samaritan Hospital, Corvallis, Oregon,  for his
 help in developing this list.
                                    44

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          TABLE 1.   THE DISEASE CLASSIFICATION SYSTEM
    I.  Respiratory  System

       A.  Upper  respiratory  neoplasms
       B.  Upper  respiratory  infections
       C.  Lower  respiratory  infections
       D.  Lower  respiratory  neoplasms

  II.  Allergies  Affecting  Respiratory System

       A.  Asthma
       B.  Hay  fever
       C.  Specific diseases

 III.  Other Allergies  and  Skin Diseases

       A.  Eczema
       B.  Other  allergies
       C.  Other  skin diseases
       D.  Specific diseases  -  allergies

  IV.  Diseases of  the  Circulatory  System

       A.  Heart
       B.  Circulatory  system

    V.  Diseases of  the  Digestive System

       A.  Upper  gastrointestinal tract - neoplasms
       B.  Ulcer  of the upper gastrointestinal  tract
       C.  Lower  gastrointestinal tract - neoplasms

  VI.  Diseases of  the  Eye

       A.  Inflammatory diseases of the eye
       B.  Non-specific eye complaints

 VII.  Diseases of  the  Genitourinary System

       A.  Benign neoplasms
       B.  Malignant  neoplasms
       C,  Nephritis  and nephrosis

VIII.  Other Diseases

       A.  Symptoms and diagnoses referrable  to nervous system
           and special  senses
       B.  Emotional, mental, and psychotic disorders
       C.  Other specific diseases
                               45

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Each disease is classified more specifically within  the  general outline presented
in Table 1.  Within the system, acute and  chronic  diseases  were grouped separately,
as were benign and malignant neoplasms.  Each  disease  is identified by a code,
such that any single disease or group of diseases  can  be selected for analysis.
For example, I-A-l-a is a malignant neoplasm of  the  nose, contained within the
category I-A, upper respiratory neoplasms.  The  complete listing of all the dis-
eases and symptoms comprising Table 1 may  be seen  in Appendix A.  The outline
code (I-A-l-a), the I.C.D.A., and the T-Code number  were coded for each disease.
These were used to search the reduced outpatient medical tape discussed above
to create a third outpatient tape containing only  the  medical records of household
interview respondents and covered dependents afflicted by the diseases on the list.
The "Outpatient I.C.D.A., T-Code Tape," as it  is called, contained 24,000 records
for the 1967-1970 period.  It became the main  medical  tape, and was employed for
generating other tapes used in the statistical analysis.

                  Derivation of the Dependent  Variables

The California Relative Value Schedule Units
Chapter IV described the advantages of utilizing in  the  analysis, as a dependent
variable, an index of the physical quantities  of medical services consumed.  While
no such index was found, the California Relative Value Schedule (C.R.V.S.)
appeared to be an appropriate substitute,  and  was  already in extensive use by
Kaiser Research for coding medical procedures.   The  first edition of the C.R.V.S.
was formulated in 1956 by the Committee on Fees  of the California Medical Associa-
tion.  The main objective of the Committee was to  develop a set of principles
to govern the development of fee schedules in  California and, in so doing, pro-
vide some uniformity in the setting of fees  [6,  p. 64].   As part of this objec-
tive, the Committee also established a uniform nomenclature of medical procedures
and a standardized code to designate each  procedure.

The Committee found through a survey of the California Medical Association mem-
bership that, while the dollar value of fees varied  widely throughout the state,
the relationship between fees for the same procedure remained essentially the
same [6, p. 64].  This observed stability  in the relationships among various

                                    46

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procedures became the basis of the C.R.V.S.  Various  factors  could be applied
to the C.R.V.S. units to convert them to dollar values,  thus  allowing the mone-
tary fees charged by various physicians to differ  from one another.  To  account
for new factors and innovations in the field of medical  practice, the Committee
has issued a new edition of the C.R.V.S. every three  to  five  years.

The C.R.V.S. was selected as the best approximation available of the desired
index of medical care provided.  Its use had the following advantages for this
study:  (1) all services are identified by a four-digit  code, and most services
are weighted by a unit value.  (2) These codes and unit  values are applicable to
an entire range of medical services:  medicine, anesthesia, radiology, surgery,
and laboratory.  (3) Kaiser Research used the C.R.V.S. procedure codes (1964
edition) to code medical services for outpatient care.   (4) Kaiser, with some
modification to fit its own purposes, had coded the procedure numbers and unit
values for the 1964 edition of the C.R.V.S. on magnetic  tape.  The tape was
continually updated by Kaiser to reflect changes in providing medical services.
A copy of this tape was obtained from Kaiser.  (5) The C.R.V.S. units are addi-
tfve.

The C.R.V.S. tape received from Kaiser was modified for  anesthesia procedures
used in surgery.  There were four such procedures  used in outpatient treatment
for which unit values had not been assigned.  Calculation of  the anesthesia
units in the 1964 edition of the C.R.V.S. was done by adding  the listed basic
unit for anesthesia per surgical procedure to the  time,  converted to units,
spent in administering the anesthesia.  Kaiser had recorded on its tape only
the C.R.V.S. units applicable to each surgical procedure, and not the basic
units applicable to the anesthesia.  The C.R.V.S.  tape was modified by attaching
the basic anesthesia units to each surgical procedure.   Hence, whenever an out-
patient surgical procedure required anesthesia, the basic anesthesia units were
added to the units for the surgical procedure.  Efforts  to find some mean or
median value of time spent on each surgical procedure were not successful.
Hence, the time factor was not taken into account  in  calculating anesthesia
units per surgical procedure.
                                    47

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Model 3
The Index of Medical Services (Y..,).  It was required  that,  in  order  to  express
	JJ*:
the effect of air pollution on health as an economic cost,  the C.R.V.S. units
per medical procedure be converted to dollar values.  This  had to be done in a
manner that would not distort the quantity of medical services consumed,  as
approximated by the C.R.V.S. units.  This was accomplished  by taking each
C.R.V.S. unit, per medical category, times a constant dollar  equivalency  (con-
version) provided by Kaiser.  The dollar equivalencies  per  medical  category  are
shown in Table 2.
             Table 2.  OUTPATIENT CALIFORNIA RELATIVE VALUE
                       SCHEDULE DOLLAR EQUIVALENCY FEES
                Medical                              Dollar
                category                           equivalency
          Surgery                                     6.50
          Pediatrics                                  7.00
          Laboratory and radiology                    7.00
          All other                                   8.00
The dollar equivalencies came from two sources.  The credit office,  Bess Kaiser
Hospital, provided the dollar conversions for surgery, pediatrics, and  all
other.  The laboratory and radiology conversion factors were obtained from Kai-
ser Research Center.  The credit office and research center used  the C.R.V.S.
units and dollar equivalencies to bill non-members and certain public grants
for medical services rendered.  These dollar equivalencies were established
January 1, 1969.  The equivalencies, taken times the C.R.V.S. units, reflected
the going fee for service rates for professional outpatient medical  services in
Portland.   The resulting dollar values may not be representative of Kaiser's*
 Conversation with Jack Thomas, Credit Manager, Bess Kaiser Hospital,  Portland,
 Oregon, July 13, 1972.

                                    48

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costs of providing  the  services.  Kaiser  did not have  a  detailed  enough  cost
accounting system to provide  such information.

The C.R.V.S. units  were converted to  dollar values  (Y.., ) as  follows:  by  code
                                                     IJK
number, each medical procedure on the Kaiser outpatient  tape  was  matched against
the same procedure  on the C.R.V.S.  tape.  The units on the C.R.V.S.  tape were
then multiplied by  the  appropriate  dollar equivalencies.  For pediatrics and sur-
gical procedures, the appropriate dollar  equivalencies to assign  were  determined
by the numeric codes assigned to the  doctors.  The laboratory and radiology pro-
cedures were grouped on the outpatient tape within a given numeric field;  pro-
cedures in these fields were  matched  and  converted to  dollar  values.   All  other
procedures and respective units were  multiplied by the $8 equivalency.

Certain coded medical procedures in the 1964 C.R.V.S. edition did not  have unit
values assigned to  them.  This seemed to  occur primarily when the services
rendered were unusual and difficult to quantify.  Kaiser sometimes modified the
C.R.V.S. and assigned units to the  procedures.  However, no attempt was made by
the authors to proxy values to procedures which Kaiser had failed to modify.  The
problem was not widespread enough to  be considered important.  However,  to the
extent these services were used by  outpatients, Y  . would represent an  under-
                                                 ijfc
statement of the dollar value of medical  services consumed.

Y.«,  then represents the summation  of dollar values (converted C.R.V.S.  units)
 ijk
for all outpatient  medical services rendered to Kaiser questionnaire respondents
in treating a presenting and/or associated morbidity in the same  office  visit,
per individual, per day.

Model 5
Per Capita Index of Consumed  Outpatient Medical Services, (Yic-)-  The dependent
variable of (5) represents the summation  of dollar values (converted C.R.V.S.
units) expressed on a per capita basis, for all outpatient medical services
rendered (to Kaiser questionnaire respondents) in treating a  presenting  and/or
associated morbidity in the same office visit, per day, per census tract.

                                    49

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           VII.  COMPILING THE SOCIOECONOMIC-DEMOGRAPHIC DATA

This section will discuss the derivation of the socioeconomic-demographic vari-
ables specified for the statistical models.  Each variable  in Equation (3)  is
also represented in Equation (5).  The variables are the same, except  for speci-
fication as individual or aggregate variables in the two equations.  Except where
noted, each variable has the same hypothesized relationship with  the dependent
variable.

The socioeconomic-demographic variables are matched in the  statistical analysis
by H.P.I.D. members.  For purposes of this study, it was decided  to use only
the medical records of actual respondents to the household  interviews  for whom
complete and specific socioeconomic-demographic data existed.

Most questions on the Kaiser household interview were coded with  a numeric code,
with each number representing a verbal response to the questions.  The data were
transformed into continuous data wherever possible.  The transformations and other
modifications performed on each variable will be discussed  below.

          Age of the Patient:  Xli>k - Model 3, Xj_ic. - Model 5
 It  is expected that older patients will consume more medical  services.   Hence,
 higher values of this variable are expected  to be positively  related to the con-
 sumption of medical services.  The age of the patient  is  expressed in years as  of
 the date of medical service.
            Sex of the Patient:  X2i>k - Model  3,   2±C'  ~ Model 5

This variable is expressed as a zero if the patient  is  male,  or a one if the
patient is  female in  (3) .  In (5) the variable is  expressed as the percentage of
female patients seeking medical care.  The variable  has been included because
the incidence of certain diseases is more prevalent  in  one sex than in the other.
For example, the incidence of emphysema has been  reported to be ten times greater
in men than in women  [10, p. 13].  A priori, little  can be said about the effect
of sex on the consumption of outpatient medical services generally, since the
relationship varies with the type of disease.
                                     50

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           Marital  Status:  X,.., - Model  3,  X..  .  - Model  5
                              JlJ K.             JlCJ
In  (3), this variable  is  expressed as  a  zero  if  the patient is not married,  and
as  a one if he is.   In (5)  the variable  is  expressed as  the percent  of married
patients seeking medical  care per census tract.   For reasons  detailed in Chapter
IV, this variable is expected to  be negatively related to the consumption of
medical services.

              Number of People in the  Patient's  Household;
                     X,... - Model 3, X..  .  -  Model  5
                     4ijk	*_  4icj	
It  was desired to have some kind  of density measure,  such as  the number  of per-
sons per room, as an indication of crowding within  the patient's home.   Increased
crowding could result  in  more physical and  emotional strain being placed upon  all
household members,  and could  also effect an increased potential for  initial  infec-
tion and re-infection  of  household members  with  certain  respiratory  diseases.
This could result in the  increased consumption of medical services.

A density measure could not be obtained  or  specified from the Kaiser data.   The
number of people residing in  the  patient's  household was the  best measure that
could be obtained.   The variable  includes not only  members  of the immediate  family,
but anyone else living in the household  at  the time of the  interview.  Higher
values of this variable are expected to  be  positively related to the dependent
variable.

          Household  Income:   X5   k - Model  3,  X-.  .  - Model 5

Household income is  Included  to measure  the ability of the  patient's household to
make expenditures in lieu of  consuming medical services  to  preserve  and  improve
its state of health.   Since all Kaiser members have the  same  opportunity to  con-
sume Kaiser medical  care, it  is expected that this  variable will be  negatively
related to the consumption  of medical  services.   An estimate  of the  1969 house-
hold income, before  taxes and from all sources, was used as a measure of this
variable.

It  should be pointed out  that, in most instances, the income  question was asked
of only one respondent per  household.  For  example,  in the  A-B questionnaire

                                    51

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only the A questionnaire was given to the male respondent.  If B  required medical
service, A's answer would be assigned to her as a measure of household  income.
If two C questionnaires were administered to respondents living in  the  same house-
hold,1 and the responses to the household income question were different  between
the two respondents, then the two responses were averaged to obtain an  estimate
of household income.  Out of the 2,439 questionnaires, this happened approximately
five times.

The household income question asked the respondent to indicate into which one of
nine income classes his 1969 before-tax income fell.  The midpoint  of the relevant
class was assigned to the respondent as his income.  An exception to this rule had
to be made for the highest open-ended class (greater than $20,000).   Census data
for the Portland S.M.S.A. relating to "incomes of families and unrelated  individ-
uals" [53, pp. 39-191] were used to estimate a median income of $32,000 for house-
holds indicating an income over $20,000.  Table 3 shows the income  response cate-
gories from the questionnaire, and the corresponding transformations per  response
category.

     TABLE 3.  HOUSEHOLD INCOME RESPONSE CATEGORIES AND TRANSFORMATIONS
       Response category                             Transformation
     Under $2,500 per year	      $ 1,250
     $ 2,500 - $ 3,499	        3,000
       3,500 -   4,999	        4,250
       5,000 -   6,499	        5,750
       6,500 -   7,499	        7,000
       7,500 -   9,999	        8,750
      10,000 -  14,999	       12,500
      15,000 -  19,999	       17,500
      Over $20,000	       32,000
 This happened only when husband and wife both worked,  were separate subscribers
 to the Kaiser Health Plan, and were both members  of  the 5 percent sample.
                                    52

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             Racei  X6ijk»  X7i1k -  Model  3»  X6icj  "
In Model  (3)  the  race variable  is  expressed as  a dummy variable in the following
manner:
Race


White 	 ,
X6ijk
1
0
0
X7ijk
o
1
0
On each variable  the statistical  test  is whether  the  consumption of medical  ser-
vices is different  for Negroes or other non-whites  (mostly Oriental),  as  compared
to the consumption  of medical services by whites.

In Model (5)  the  Negro and other  non-white variables  are combined, and express
the percentage of non-white patients consuming medical  services.  The  variable
permits a test on whether the consumption of medical  services by non-whites  is
materially different from whites.

As with the sex variable, the relationship of the race  variables to the consump-
tion of medical services will depend upon the diseases  aggregated in the  depen-
dent variable.  If  the relationship of race to disease  incidence is not known,
then, a priori, the sign of the variable's coefficient  cannot be determined.

              Physical Fitness:   Xg..,  and Xg. .,  - Model 3
A physically fit patient would be expected to consume fewer medical services.
There was one question in the household interview which elicited information on
physical fitness.  It was stated to the respondent as follows:

          "How much time and energy do you spend being physically
          fit - a great deal, some, or very little?"

Dummy variables were used to describe the qualitative responses as follows:
                                    53

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                Physical fitness
          Great deal of time and energy...   1      0
          Some time and energy ............   0      1
          Very little time and energy.....   0      0

The responses to the physical fitness question were subjective.  Hence,  there
was difficulty in standardizing the answers as between responses.  The question
was the best assessment on physical fitness available from the  interview.   How-
ever, the use of qualitative (dummy) variables does permit explaining some  differ-
ences between individual responses.  The variables were expected to be negatively
related to the dependent variable.

Physical fitness was not included as a variable in (5) because  only qualitative
variables could be used to represent each response.  Aggregation of qualitative
variables over census tracts, where variations in group behavior are being  ex-
plained, presents a problem of adequately interpreting the results.

                   Consumption of Alcoholic Beverages ;

                   X10i.1k " Model 3» *7icj " M°del 5
This variable expresses the number of times in the 12 months prior to the inter-
view date the patient has had the equivalent of about six drinks , a bottle  of
table wine, or eight cans of beer.  Higher values of this variable are expected
to be associated with a greater consumption of medical services on the part, of
the patient.

Table 4 shows the transformations on each response category to  the question. The
transformations were constructed by taking the midpoint of each time period indi-
cated in the response.

          Cigarette Smoking: X<  - Model 3, X.  - Model 5
Each patient's smoking characteristics were  embodied  in  a single index.  The
index took a value of zero if the patient  did not  smoke,  and went to a high of
1960 for current smokers smoking the longest period of time and the largest
                                    54

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          Table 4.  TRANSFORMATIONS PERFORMED ON  THE  RESPONSES
                    TO THE DRINKING QUESTION
              Response categories                     Transformations
          Every day or nearly every day	      365.0
          Three or four times a week	      182.5
          Once or twice a week	       78.2
          Two or three times a month	       30.0
          About once a month	       12.0
          Six to eleven times a year	        8.5
          One to five times a year	        3.0
          Never in the last twelve months.	        0.0
number of cigarettes per day.  The  index  also  incorporated  the smoking  character-
istics of former smokers,  including the amount  they smoked, how long  they  smoked,
and how long it had been since they stopped smoking.

Two sets of questions  from the household  interview were used  to obtain  informa-
tion on the smoking habits of current  and former cigarette  smokers.   The first
question asked the respondent if he currently  smoked cigarettes, and  if he did,
how many cigarettes he smoked each  day;   and how many years he had smoked.  The
responses to this question are shown under (I)  in Table 5.  The second  question
asked former smokers how many cigarettes  they  used to smoke,  how many years they
had smoked, and how long it had been since they had stopped smoking.  The  respon-
ses to this question are under (II)  in Table 5.

In Table 5, the transformations were constructed by taking  the midpoint of each
response interval.  The following criteria were followed in quantifying the open-
ended responses.  A frequency distribution of  the responses showed that fewer than
nine respondents out of 2,439 indicated they currently smoked or had  ever  smoked
more than 61 cigarettes a  day.  It  was decided  that 70 cigarettes would be a rea-
sonable number to use  for  this group.

A frequency distribution on age was generated  for the questionnaire respondents.
Their median age was calculated to  be  46.  The  legal age for  smoking  in Oregon is

                                     55

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Table 5.  SMOKING CHARACTERISTICS AND TRANSFORMATIONS ON
          THE RESPONSE CATEGORIES

      Response categories                 Transformations

I.  Current smokers:

    A.  Number cigarettes per day:
             Under 10	       5
             10 to 20	      15
             21 to 40	      30
             41 to 60	      50
             61 and over	      70

    B.  Number of years smoked:

             Under 1 year	     0.5
             1 to 3 years	     2.5
             4 to 5 years	     5.0
             6 to 10 years	     8.5
             11 to 20 years	    15.0
             Over 20 years	    28.0

II. Former smokers:

    A.  Number cigarettes per day:

             Under 10	       5
             10 to 20	      15
             21 to 40	      30
             41 to 60	      50
             61 and over	      70

    B.  Number of years smoked:

             Under 1 year	     0.5
             1 to 3 years	     2.5
             4 to 5 years	     5.0
             6 to 10 years	     8.5
             11 to 20 years	    15.0
             Over 20 years	    28.0

    C.  Number of years since cessation
        of smoking:

             Less than 3 months	    0.13
             4 to 6 months	    0.42
             7 months to 1 year	    0.79
             More than 1 to 3 years	    2.50
             4 to 5 years	    5.00
             6 to 10 years	    8.50
             Over 10 years	   13.50
                           56

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18.  While some people start smoking earlier and others later,  18  is probably
a good estimate of the median age when people start smoking.  Therefore,  28
years (the difference between 46 and 18) appeared to be a reasonable number of
years for those who indicated they smoked for 20 years or more.

The last response category in Table 5 (II-C) asked the former smoker how  long
it had been since he had stopped smoking.  The American Cancer  Society and other
researchers have established that after 10 years of not smoking, the death rates
of former smokers and lifelong abstainers are virtually the same [3, p. 131;  65,
p. 145],  Given this evidence and the structuring of the last response category
in (II-C), it was felt that 13.5 years would be a reasonable number of years
for those who indicated they had quit smoking over 10 years ago.

There is a direct association between the number of cigarettes  smoked per day,
the number of years smoked, and mortality and morbidity incidences of lung cancer
and coronary diseases [64; 65, p. 11].  It appears that as the  number of  years
since cessation of smoking increases, the ex-smoker's state of  health becomes com-
parable to that of a person who has never smoked.  There is also an Immediate
response of the body to cessation of smoking.  Within six months after discontinu-
ance, the bronchial system improves to a steady state;  i.e., pulmonary function
or vital capacity stabilizes.   There is an immediate response  of the cilia to
                                                         2
cessation of smoking.  Each cigarette paralyzes the cilia  for  20 minutes.  It is
the opinion of some medical authorities that it takes from 3 to 6 weeks after
discontinuing smoking to make a reasonable difference in the ability of the body
                      3
to ward off infection.

It was desired to construct an index which would have at least  some potential
for reflecting the conditions described in the preceding paragraph.  Extensive
reading of the medical literature and conversation with medical authorities failed
 Conversation with James F. Morris, M.D., Veterans Administration Hospital, Port-
 land, Oregon, December 3, 1971.
2Cilia are hairlike cells that line the airways and, by their movement, propel
 the dirt and germ-filled mucous out of the respiratory tract [41, p. 91],
Conversation with Arthur Koski, Head and Professor, Department of Health Educa-
 tion, Oregon State University, Corvallis, October 19, 1971.

                                     57

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to give any clues on the existence or on means of constructing  such  an index.
Finally an index, described by Equation (6) and developed by  the  authors,  was
constructed for the Kaiser data:
                                                V
                                     t*i
where     S, = smoking index of the k — person seeking outpatient
               medical care.
          A, = the number of cigarettes per day the k — patient
               seeking outpatient medical care currently  smokes
               per day.
          B  = the number of cigarettes per day the fc — patient
               seeking outpatient medical care used to smoke  per
               day.
          C. = the number of years the k — patient seeking  out-
               patient medical care has smoked.
          D  = the number of years the fc — patient seeking  out-
               patient medical care used _tp_ smoke before  quitting.
          E, = the number of years since the k — patient  seeking
               outpatient medical services has quit smoking;  and
               (k = !,••-, £).

 If a person currently smoked 70 cigarettes per day, and had done so for 28 years,
 his index would be 1960.0.  If a patient quit smoking 13.5  years ago and, at the
 time he  quit smoking, smoked 70 cigarettes per day for a  period  of 28 years, then
 his index would be 135.2.  Patients who have never smoked in  their lives assumed
 a value  of  zero in the index.

 Higher values of the index represent more intense cigarette smoking.  Because of
 the relationship between intense cigarette smoking and cardiovascular-respiratory
 problems, this index is expected to be positively related to  the dependent variable
 in both  models .
                     Occupational Air Pollution Exposure;
                     X12ijk " Ifodel 3' X9icj  - Model 5
 Job-related pollution can aggravate certain  respiratory problems [27, p. 34; 42,
 p.  13],   Job-related pollution would not,  in most instances, be measured by the

                                      58

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regional, ambient air pollution stations.  To take account of this  fact, an
occupation exposure index was constructed for each employed patient seeking out-
patient medical care.  A value of zero was assigned to patients who did not work.
It is expected that higher values of this variable will be positively related to
the dependent variable in both models.

The occupational exposure index was constructed in the following manner:  the
household interview contained a question asking each respondent to  identify his
specific job.  The question was coded, using the numerical classification of
occupations published in the 1960 Census of Population, Alphabetical Index of
Occupations and Industries [52].  A listing of the occupations was  submitted to
Mr. Darryl D. Douglas,  who rated each classification on a scale of one to four.
The ratings were assigned to each class, based on the probability of that occupa-
tion being characterized by a particulate problem which could aggravate certain
cardiovascular-respiratory problems.  The meaning of the scales was as follows:
four equaled a high hazard to particulate exposure;  three equaled  an intermediate
hazard;  two equaled a moderate hazard;  and one equaled a low hazard.  Each weight,
with its respective occupation code, was multiplied by the average number of hours,
including regular overtime, the patient worked per day.  The resulting product
was the occupational exposure index.
   .  Douglas is the Director, Occupational Health Section, Health Division,
 Department of Human Resources, State of Oregon, Portland.
                                     59

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        VIII.  COMPILING THE AIR POLLUTION AND METEOROLOGICAL DATA

                          The Air Pollution Data
The air pollution data were collected from the various state and regional  air
pollution control agencies having jurisdiction in the Portland S.M.S.A.  All
of the agencies had similar methods of sample scheduling and collection, analy-
sis, and data reporting.  Hence, the air pollution data were comparable among
the originating agencies.

Each air pollution station was identified by a unique number.  The stations were
located on a grid coordinate system, expressed in state plane coordinates.
The coordinates were used by one of the regional agencies to plot air pollution
isopleth maps of the form shown in Figure 5.  The suspended particulate stations
operated continuously for 24 hours every fourth day.  All stations in the  Port-
land S.M.S.A. were operated simultaneously.  The air pollution data were coded
on 80-column cards for ease of data processing.  Stations which had error  in
their data, or which were poorly sited such that they did not provide repre-
sentative measures of ambient air pollution, were not used.

.Selecting the Proper Measure of Air Pollution
Portland's main air pollution problem is particulate matter.  The effects  of
particulate matter and other air pollutants were presented very briefly in Chap-
ter IV.  More specifically, particulate matter can physiologically affect  human
health in several ways.  These effects would initially occur in the respiratory
system, but the cardiovascular system could also be affected by additional
 In order to insure the location of original land survey measurements,  the  United
 States Coast and Geologic Survey has worked out for each state a system  of state
 plane coordinates [48, pp. 29-30],  The coordinates are expressed  in feet.  To
 limit the size of the grids and to keep scale variations to a minimum, each state
 usually has two or more overlapping zones.  Each zone is covered by  a single
 coordinate system [30, pp. 345-346].  All Oregon air pollution and meteorological
 stations are located in the Oregon North Zone;  all Washington air pollution and
 meteorological stations are located in the Washington South Zone.
                                     60

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           WILLAMETTE R.
HM-LSBORO

 40 WASHINGTON
  I     CO.
FIGURE 5;  ISOPLETH  MAP  FOR  PORTLAND  AREA

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stress being placed upon it by an impaired respiratory system.  Particulate mat-
ter may exert a toxic effect on the human body via one or more of the following
three mechanisms:

     1.  The effect of particles on human health can be due to the
         particle's inherent chemical and/or physical characteristics
         [59, p. 141].  The most important toxic aerosol is sulfur tri-
         oxide.  Others of increasing importance are lead, beryllium,
         and asbestos [59, p. 129].
     2.  The particles may interfere with one or more of the clearance
         mechanisms in the respiratory tract [59, p. 141],  The particle
         size will determine the location of the toxic effect in the res-
         piratory system.  Small particles of less than two or three mi-
         crons can penetrate deep into the respiratory system where no
         protective mucous blanket exists [41, pp. 33-34].
     3.  The particle can act as a carrier of an adsorbed toxic substance
         159, p. 141].  The toxic effect of sulfur dioxide seems to be
         greater when the gas combines with an aerosol than either is alone
         [1, p. 62; 60, p. 111].  Sulfur oxides can produce immediate air-
         way constriction [41, p. 66].

Some air contaminants (gaseous or particulate) could weaken the body's defense
mechanism, making it more susceptible to germs, bacteria, or viruses which can
precipitate an active disease [41, p. 65].  A review of numerous epidemiological
studies indicated an association between air pollution, as measured by particu-
late matter accompanied by sulfur dioxide, and health effects of varying severity
 [60, p. 146].

There  are two main types of atmospheric particulate matter in urban areas:  sus-
pended particulate matter and dustfall (particle fallout) [59, pp. 11-17].  In
this study, suspended particulate data were selected over particle fallout as the
measure of air quality in the study area.  There are several reasons for this.

Dustfall consists of particulates 10 microns or larger  [59, p. 16], which settle
out of the air fairly rapidly [44, p. 7; 59, p. 28].  These particle sizes are
too large to be respirable by the human body.  Suspended particulate matter con-
sists  of particle sizes smaller than 10 microns  [59, p. 16],  Suspended particu-
late matter is respirable.  Hence, because of the settled particles' larger sizes,
particle fallout measurements are not capable of assessing the health risks of air
                                     62

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pollution.  The large  sampling period  usually  associated with  collecting  particle
fallout  (30 days) would prohibit measuring, or approximating,  day-to-day  changes
in air quality.

High-volume samplers are used by the air pollution  control  agencies  to  collect
suspended particulate matter.  The operation of high-volume samplers consists of
drawing  air through a  filter of low air resistence.  The filters  are felts  of
glass or some synthetic organic fiber  [59, p.  22],  The filters can  trap  particle
sizes as small as 0.3 microns  [61].  The samples  are collected over  a 24-hour
period.  The filters are then analyzed, and the results reported  as  total weight
in micrograms per cubic meter.   The total weight of suspended particulate  mat-
ter was  used as the air pollution parameter in this study.
Preparing the Air Pollution Data for Use
in the Statistical Models
The suspended particulate stations were operated  every  fourth day during  the
study period.  The medical and meteorological  data were daily observations.   It
was desired to observe changes in the  consumption of medical services with changes
in air quality.  This required the formulation of a procedure to estimate air
quality on days for which data were not available.  Two alternatives were con-
sidered to estimate the missing data:  linear  interpolation and spline fit.   The
spline fit was selected over linear interpolation for the reasons detailed below.

The spline fit is executed by connecting each  pair of adjacent points (observa-
tions) with a third degree polynomial, matching up the  sections such that the
first and second derivatives are continuous at each point [45, pp. 404-405];  i.e.,
the spline fit is a piecewise cubic function which is twice continuously  differ-
entiable [67, p. 27].

The spline curve is a higher order fit of data points than is linear interpola-
tion.  The curve is of piecewise construction, which means that only part of  the
data for a given station is fitted at a time.  More specifically, the spline  fit,
 Some agencies perform analyses on the total weight of particulates to determine
 their chemical composition.  These analyses are also reported in micrograms per
 cubic meter.
                                     63

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as employed in this study, used four observation points  to  fit  each  segment.   For
example, observation points A, B, C, and D would be used to fit one  segment of
the curve.  Points B, C, D, and E would be used to fit the  next segment.   While
estimated points between D and E would be most influenced by the actual observed
values at D and E, points B and C would also have some influence.  Using  linear
interpolation would have resulted in only two observation points being  used to
determine each linear segment.

Assigning Air Pollution Values to Residential
and Job Addresses
A method was needed to assign air quality values to each household interview
respondent for outpatient medical services consumed in the  treatment of the dis-
ease categories listed in Table 1.  The procedure had to be capable  of  accounting
for air pollution levels at the patient's residence and  his place of work.

The method for assigning air quality values to each patient made use of an Admatch
computer program developed by the U.S. Census Bureau and local  agencies.   The
program, in one of its forms, geocoded street addresses  to  state plane  coordi-
nates.   The meteorological and air pollution stations were also geographically
located by state plane coordinates.  These coordinates were used to  assign air
quality and meteorological values to each residence and  job address.

Two techniques were considered for estimating air quality levels for each outpati-
ent.  The first was a least squares analysis employing various  mathematical forms.
This technique was not successful.  In the second method, air pollution values of
a certain address were calculated by weighting the observed air pollution values
of the three closest stations by their distances from the address in question.
The distance from each address to each station was calculated using  state plane
coordinates.  The procedure is shown in Equation (7).
                                                           (S31>
 See  [54] for a detailed description of  the Admatch  program.
                                     64

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where      P     = the estimated air pollution value for address i on day j.

           D.  .  = the distance (in feet)  the closest station is from address  i
                  on day j.
           S..   = the observed air pollution values of the closest air pollu-
            ^     tion station to i on day j.
           D-  .  = the distance (in feet)  of the second closest station from
             ^    address i  on day j.
           S^.   = the observed value of air pollution on day j for the
            ~*     second closest air pollution station to i.
           D_    = the distance (in feet)  of the third closest station from
             •*    address i  on day j.
           S,.   = the observed value of air pollution on day j for the
            ^     third closest air pollution station to i;  and
                  (i - 1, •••, d);  (j =  1, ••-, m).

The use of distance to weight each air pollution observation is simple and in-
expensive  to employ.  The biggest disadvantage to its use is that only distance
is taken into account.   Admittedly, topographical and meteorological conditions
can play important roles in fluencing the distribution of pollutants.   Another
disadvantage of using the distance system is that the air pollution values calcu-
lated for  any address are constrained to a range of values, the limits of which
are determined  by the highest and lowest air pollution observations of the three
closest stations used in Equation (7).   However, given the  structuring of the
study's air pollution network,  this disadvantage is not critical.   The study's
air pollution station network was designed to measure ambient air pollution.   The
air pollution station sampling sites  were, for the most part, representative of
the surrounding terrain, and were not subjected to contamination by a point  source
air pollution emission.

Several stations located in the immediate Portland Metropolitan area did not
operate continuously during the two-year study period.   The computer program used
to calculate the weighted air pollution  values took account of this non-operation.
If a non-operating station  was  one of the three closest stations to a patient's
work or residence address,  then the non-operating station was passed over and the
next closest station to  the address was  used in calculating the weighted air
pollution value.
                                      65

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Derivation of the Ambient Air Pollution Variable;
X13iik " Model 3» Xllicl - Model 5
Many of the Kaiser respondents work, and the place of work  (in all but a  few
instances) was different from the residence address.  One would expect, there-
fore, that on the same day air pollution values would be different as between
the addresses, generally reflecting a suburban-urban gradient of ambient  air
quality.  It was desired to reflect such differences in the air pollution values
assigned to each patient.  Hence, the air pollution variables in each model were
weighted to reflect the patient's potential exposure to air pollution at  both
residence and job addresses .

The weighted air pollution value assigned to each patient was calculated  by Equa-
tion (8) :
                 (J. ..  + T. .. ) P'   + [24 - (J..,  + T.M )] P*
                          ijky  ijk           xjk    ijk/J  ijk
           ijk -                       24

where     P..,  = the weighted air pollution value assigned to the k —
            ^    patient who consumes outpatient medical services for
                 disease i on day j.
          J..k = the number of hours worked per day (including regular
                 overtime) by the k — patient consuming outpatient
                 medical services for the i — disease on day j.
          Ti'k = the avera6e transit time to and from work by the k —
                 patient consuming outpatient medical services for the
                 i — disease on day j .
                                                                     f*Vi
          Piik = estimated air pollution at the job address for the k—
                 patient consuming outpatient medical services for the
                 i — disease on day j .
           *
          Piik = es£imated air pollution at the residence address for the
                 k— — patient consuming outpatient medical services for the
                 i — disease on day j ;  and
                 (i = 1, •••, n);  (j - 1, ••-, m);  (k = 1, •••, 0).
                                     66

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Whether the patient worked or not, and the transit time to and from work, was
determined from  the household interview.  For purposes of calculating the weighted
air pollution, it was always assumed that the patient was either at work, in tran-
sit, or at his place of residence.  The transit time was added to the number of
hours on the job, because it was felt the pollution in transit to and from the
job site would be higher than air pollution at the place of residence.

A question in the household interview asked the respondent what days of the
week he normally worked.  Answers to the question allowed account to be taken in
Equation C8) of normal work week patterns.  If the patient indicated he worked
Monday through Friday, then Saturday and Sunday were considered as days off;
i.e., if he became ill on Saturday or Sunday, and consumed out patient medical
services, the value of air quality assigned to him would be his residence air
pollution.  Unless it was indicated otherwise, Sunday was always considered a
day off.  An exception to this was when the patient indicated he worked through
the weekend, but had a day off in the middle of the week.  In this case, Wednes-
day was assumed to be that day.  It was assumed that patients who had Mondays,
Tuesdays, Thursdays, and Fridays off would be normally distributed about Wednes-
day.  Patients who indicated they worked less than five days a week were assigned
their residence air pollution values, because there was no way of telling, from
the Kaiser data, which days they worked.

                          The Meteorological Data

Collecting and Analyzing the Meteorological Data
An attempt was made, via the selection of the meteorological data and the meteoro-
logical station sites, to account for the meteorological influences of the Columbia
River Gorge.  Areas affected by the Gorge are generally characterized by lower
annual rainfall and cooler annual mean temperatures than other geographical areas
located in the Willamette Valley.  The differences result from the interaction
of the dry, cold east Gorge winds with the moist marine air from the west.

Given the wide divergence of meteorological conditions between the Willamette
Valley and the Columbia Gorge, and the initial decision to reflect in the analysis
the effect of such variation on air pollution and health, it was important that
                                     67

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any meteorological data selected for use in this study be representative of  a
large geographical area and be of good quality.  Data from the National Weather
Service (N.W.S.) of the U.S. Department of Commerce were used in this study.
The data were compiled from published sources  [55, 56, 57].

There were many stations and data which could be coded within the study area.
Several simple statistical tests and visual inspections of the data were conducted
to determine what stations should be used and the frequency with which the data
should be coded.  The analyses dealt with variations of meteorological conditions
in the study area over space and time.  The period of record for these tests was
1967 through 1970.2

When one year was compared to another during the 1967 to 1970 period, mean annual
temperature and total annual precipitation of all meteorological stations in the
study area, with one exception, fluctuated together.  That is, if Hillsboro was
greater in mean annual temperature for 1967 compared to 1968, then so were the
other stations.  The exception was annual precipitation at Oregon City between
1969 and 1970 (see Figure 4 for a map of the study area).

A statistical test was conducted to determine whether annual weather patterns (as
measured by temperature) were significantly different for the 1967-1970 period.
For all meteorological stations taken as a group, the first test compared the
highest and lowest annual mean temperatures recorded during the four-year period.
The two stations exhibiting the largest difference between each other were Port-
land City (annual mean temperature 1967) versus Vancouver (annual mean tempera-
ture 1970).  The test showed the means not to be statistically different at  the
5 percent level.
 In investigating and retrieving data available through the National Weather Ser-
 vice, the researchers are indebted to Stanley Holbrook, Oregon State Climatolo-
 gist, National Weather Service, Portland, Oregon.
2
 The stations used in these analyses were located in or near the towns of Warren,
 Portland, Hillsboro, Oregon City, Troutdale, and McMinnville in Oregon; and
 Vancouver, Washington.
                                     68

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 For all  stations  taken as  a group,  a similar  test  compared the  highest and low-
 est monthly mean  temperatures  recorded (for the  same months, but  over  the  four-
 year observation  period) in order  to determine whether there were significant
 monthly  fluctuations  in temperature between the  various stations.   The statistical
 test showed the means  to be statistically  different from each other at the 1 per-
 cent level.  The  two  stations  exhibiting the  largest difference were again Port-
 land City and Vancouver for February 1970.

 From these analyses it  appeared that,  while there may  be monthly  fluctuations
 between stations, the annual meteorological conditions within the  study area
 were not materially different with  respect to temperature.  Where  changes  did
 occur from one year to  the next with temperature and precipitation,  the changes,
 with the exception noted, were all  in  the same direction.

 Since this study was using daily medical records, and  the air pollution values
 could be estimated daily, it was decided to use daily meteorological conditions.
 However, a judgment was made that, since all the stations seemed to fluctuate in
 the same direction, coding of daily data for all the stations would not materially
 add to the statistical analyses.  Hence, the decision was made to code the daily
 meteorological observations of two stations,  and assume that the stations would
 represent the  meteorological changes occurring over the study area.  The stations
 coded were Portland International Airport,  located on the Columbia River,  and
 Portland City  Weather Bureau, located in downtown Portland.  The Portland Air-
 port  station was assumed to be representative  of the meteorological conditions
 affected by the  Columbia Gorge.  The Portland  City station was  selected because
 it was  somewhat  removed from the influence  of  the Gorge.  Hence, data from the
 downtown station were considered representative  of the  southern  portion of  the
 study  area.  Patients consuming outpatient  medical services were assigned  the
 meteorological values of the station closest to  their residence  address (as de-
 termined  using state plane  coordinates).

 Derivation  of  the  Meteorological  Variable;
       - Model 3»  *LOiej -  Model  5
The effect of temperature  extremes on  cardiovascular-respiratory problems was
detailed in Chapter IV.  It was desired  to specify  a measure which would incor-
porate both temperature extremes into  one variable.  Degree days, the  absolute
                                     69

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difference between the average daily temperature and 65° F, appeared  to  fulfill
this requirement.  As the average ambient temperature becomes colder,  the  value
of the variable will increase.  Similarly, as the average ambient  temperature
becomes warmer (above 65° F), the value of the variable will also  increase.
Higher values of this variable were expected to be positively related  to the
dependent variables of both statistical models.
                                     70

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                            IX.   STATISTICAL  RESULTS

              Preliminary Analyses on  the  Air  Pollution  Data
An initial question which had  to be  answered was whether air quality levels vary
over time and space in  the  Portland  area.  Several preliminary  analyses were
conducted on the air pollution data  to determine whether such variation existed.
The analyses included computing the  monthly  means, variances, and standard devia-
tions for nine suspended particulate stations  which  had  been in operation through-
out the 1969-1970 study period.  The results indicated quite an amount of within-
month-variation for each station.

An analysis of variance was performed  on the monthly means  of nine suspended
particulate stations operating  during  the  entire 1969-1970  period.  The analysis
of variance may be seen in  Table 6.  It should be  noted  that the following holds
for any analysis of variance containing interaction  terms:   if  any of the first
order interactions are  significant (year by  month, year  by  station,  and month  by
station in Table 6), then the main effects (year, month,  and station in Table  6)
do not have any meaning.

Looking at the first interaction term  (Y x M),  the following hypothesis is tested:
Ho-: The differences between months  are the  same from  one year  to the next.  The
null hypothesis is rejected.  The F  test is  significant  at  the  1 percent level.
The differences between identical months are not the same from  one year to the
next.  One could tentatively conclude  from the analysis  that the depth of the
pollution surface (amount of pollution) in Portland  changes from one year to the
next within the same months.

The interaction M x S tests the following  hypothesis:  Ho2: The differences be-
tween stations are the  same from one month to  the next within the same year.  The
F test was not significant; hence the  null hypothesis  is not rejected.   One can
tentatively conclude that the  differences  between  stations  do not change signifi-
cantly from one month to the next.   This would tend  to indicate that while the
depth of the pollution  surface  might change  by month from one year to another,
the shape of the surface will not change significantly from station to station
over time.
                                     71

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               Table 6.  ANALYSIS OF VARIANCE TABLE FOR THE
                         NINE SUSPENDED PAKEICULATE STATIONS
Source



Year by month
Month by statJ
Year by static
Year by month
(Y x M x
TOTAL...,





(Y x M)....
Lon (M x S).
in (Y x S)..
by station
S) 	


Sums of
squares
3967.2244
17909.9682
102040.3072
16389.1217
5398.1639
3881.0485
40618.4404
238784.2743

Degrees <
freedor
1
11
8
11
88
8
88
215

>f Mean
a square
3967.2244
1628.1789
12755.0384
1489.9202
613.3882
485.1311
461.5732


F
mmf
fmi^m
__
3.2279
1. 3289
1.0510
__

The interaction Y x s tests the following hypothesis:  Ho,: The differences be-
tween stations are the same from one year to the next.  The F statistic is not
significant, and Ho_ is not rejected.  This would tend to corroborate the M x s
interaction: while there may be changes in the depth of the pollution surface,
the relative shape of the surface does not change from one year to the next.

The tests of the above hypotheses allowed the following conclusions  to be advanced
about air pollution patterns in Portland.  If annual or monthly isopleths of
pollution loadings in Portland were compared, one would find that while the amount
of pollution (depth of the pollution surface) in Portland may vary over time, the
relative loadings (shape of the pollution surface) would remain unchanged;  i.e.,
areas with high pollution would remain high in comparison to all other areas,
and areas with low pollution would generally remain low in comparison to all other
areas.

             Preliminary Examination of the Statistical Models
Only outpatient medical records of respondents to the household interview were
examined in this study.  To obtain these records, a sort was made on the "Out-
patient I.C.D.A., T-Code Tape," discussed in Chapter VI, to create a second

                                     72

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magnetic  tape  containing only respondent outpatient medical records for 1969 to
1970.  This  tape will  be referred to as "The C.R.V.S.  Severity Tape."  It con-
tained approximately 6,000 outpatient medical records.

The medical  records  were matched to the socioeconomic-demographic data on the
"Household Interview Tape."  As the medical and socioeconomic-demographic records
were being matched,  the  records of respondents not living in the study area were
deleted.

Air pollution  and meteorological values were estimated  for each patient on the
day of contact with  the  medical system, and for each of the three days prior to
that contact.  The lagging of air pollution and meteorological values was an
attempt to determine how soon after meteorological and  air pollution conditions
change do morbidity  patterns  change.

There are two  principal  types of delays which can effect a postponement between
exposure  and the seeking of medical care:   (1) a short  time may elapse between
exposure  to  environmental conditions and disease onset  or aggravation; (2)  once
a patient is ill, it may take him awhile to recognize the fact and seek medical
care.  The quest for determining a time sequence in causality between exposure
to air pollution and meteorological phenomena and the onset of an illness pre-
supposes  some  reasonable length of time between cause and effect.   Because
several medical studies, using daily data,  have used one-,  two-,  and three-day
lags [14, pp.  1062-1063; 21,  p. 594],  this  study did likewise.

Two statistical models were postulated for  this study.   The transformations
which might  be required  on the models'  variables, in order to obtain the best
fit of the data, were  not known beforehand.   In most instances there were numer-
ous transformations  which could have been performed on  each variable.   Using all
data to test each transformation would have been expensive and time-consuming.
Hence, to pretest the  statistical models, two 10-percent systematic samples were
drawn from The C.R.V.S.  Severity Tapes. One sample was used to derive the final
specification  of Model 3;   the other was used on Model  5.

Many transformations were tried with each of the variables  in the models.  One
method was to  examine  scatter diagrams between the dependent and each of the

                                      73

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independent variables.  The form of the scatter would often  provide  clues  to
transformations needed on the variables.  These transformations were then  tried
in regression.  Where several transformations were tried on  the same variable,
the criterion used to decide between the specifications was  to choose the  trans-
formation giving the highest level of significance; i.e.,  the largest t  statis-
tic on the coefficient.  Where this did not discriminate,  the transformation
                                                                   2
which yielded the highest coefficient of multiple determination (R )  was chosen.
The following variables in both models were transformed to natural logarithms:
the dependent variables, the air pollution variables (including all  lags),  and
the meteorological variables (including all lags).  The meteorological variable
was respecified from degree days to a Temperature Humidity Index  (T.H.I.).

Degree days was dropped from the models because the coefficients were not  statis-
tically significant and had negative instead of the expected positive signs.
The discussion on the meteorological variable in Chapter IV  demonstrated there
are many meteorological conditions which can affect a state  of health.   A priori,
it is difficult to identify the meteorological conditions which will  affect a
state of health within a given region; i.e., different meteorological variables
must be tried.  Degree days was included within the model because  it  was a
variable which took account of extremes of temperature at both spectrums.   Prob-
ably the prime reason the variable was not significant was the lack  of varia-
tion exhibited in the variable.  For example, on the 10 percent sample,  degree
days (unlagged) had a mean of 13.65 and a standard deviation of 8.89.  This
would tend to indicate that temperature extremes in Portland were  not severe
enough to affect states of health.

Temperature and humidity have been associated with both cardiovascular and res-
piratory problems.  The T.H.I, allows both conditions to be  expressed as one
measure.  Originally, the main purpose for developing the T.H.I, was  to  have a
simple method of determining the effect of summer conditions in the  United
States on human comfort [51, p. 41].  There are several ways to calculate  the
T.H.I.  The following formula [51, p. 41] was used in this study:           »

                    T.H.I. - 0.4(Td + TW) + 15                        (9)
                                     74

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where               Td =  dry-bulb  (air)  temperature  in  °F.

                    T  = wet-bulb  temperature  in  °F.
                     Vw


Higher values of the T.H.I, mean increased  discomfort to  the  patient.   Empirical

studies in the United States have  shown  that 10 percent of  the  general  popula-

tion becomes uncomfortable when T.H.I, reaches a  value  of 70.   Fifty percent of

the population becomes uncomfortable when the  T.H.I, reaches  75 [51, p.  42],

For patients susceptible  to circulatory  and respiratory problems,  higher T.H.I.

values could aggravate existing health conditions and result  in increased con-

sumption of medical services.  Hence, it is expected the  coefficient of this

variable will be positively related to the  dependent variable.


The respecified statistical models resulting from the pretest are  given below.

Model 3 has been respecified as Model 10, and  Model  5 has been  respecified as

Model 11.
          ln Y    * In3  + 6X     +  62X2ijk +  33X3ijk +  34X4ijk
                    65X5ijk + 66X6ijk + 37X7ijk +  38X8ijk +  39X9ijk


                    310X10ijk + 3llXllijk +  312X12ijk +  313lnX13ijk
                  + 314lnX14ijk + Eijk


where     X,,. .,   = a measure °f the meteorological conditions that the
                    k — patient, who consumes medical services for disease
                    i, is exposed to on day j , expressed as a Temperature
                    Humidity Index; and

                    (1-1, ••', n);  (J - 1, •••, m);  (k = 1,  •••,£),
 Atmospheric humidity can be measured by use of a mercury thermometer with a
 moistened wick surrounding the mercury reservoir.  With adequate ventlation,
 the wick's temperature is lowered by evaporation to a constant value, which
 is called the wet-bulb temperature.  This, together with air temperature and
 suitable tables, can be used to determine dew point or relative humidity
 [36, p. 7],

 The only meteorological station in Portland which measured wet-bulb temperature
 was at the Portland International Airport.  Hence, both wet-bulb and dry-bulb
 temperatures used in calculating the T.H.I, were measured at the Portland Air-
 port and inferred as being representative of the entire study area.


                                     75

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and
     Xlijk» "•' X13ijk;  30' •"• 313;  and £ijk are M Previously  defined
     in Model 3.

Model 5 Is respecified as follows:
where       ^-in-  • = t*ie avera8e measure of meteorological  conditions  for
             lOicj   patients consuming outpatient medical  services  for
                     disease i from census tract c on day j, expressed as
                     a Temperature Humidity Index; and
                     (i - 1, •••, n)   (c = 1, •••, p);   (j  = 1,  •••, m),
                                                              £icj  «"  as  pre"
    viously defined in Model 5.
There were several results using the pretest which influenced  the  testing and
respecification of the statistical models.  Statistical tests  were conducted to
determine whether an interaction existed between the air pollution and meteoro-
logical variables.  The interaction variable was included  in the model separately
from, and with, variables measuring meteorological and air pollution phenomena.
The tests were not statistically significant.

Two air pollution variables were examined during the pretest.   One variable was
composed only of the patient's estimated exposure to air pollution at his place
of residence.  The second variable tested was weighted, as discussed in Chapter
VIII, to reflect exposure to air pollution at place of residence and work.  The
weighted air pollution variable proved to be statistically more significant.

It was felt that if a relationship between air pollution and the consumption of
medical services were to exist, then the association would most likely be re-
flected through medical services used to treat respiratory and circulatory ill-
nesses (Categories I and IV in Table 1, Chapter VI).  Air  pollution was found

                                     76

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to be statistically  significant at  the 5 percent level for respiratory diseases
analyzed alone,  and  for circulatory-respiratory diseases analyzed together.   Air
pollution was not  statistically significant when circulatory diseases were analy-
zed alone.   For  this reason,  only respiratory and respiratory-circulatory dis-
eases together were  analyzed  in the respecified models using all the data.

In the pretest regression on  Model  11, air pollution was not statistically signifi-
cant in affecting  the consumption of outpatient medical services used to treat
                                      2
respiratory  illnesses.   The highest R  occurred when the air pollution and
meteorological variables were lagged one day.  Hence, given a severe budget
constraint on the  funds available for computer use,  this model was not extended
to analyze other disease categories.

It was expected  there might be a problem with autocorrelation in the analysis.
However, a plot  of the  residuals indicated that such a problem did not exist for
either of the disease categories tested.

The results  of the pretest regressions may be seen in Appendix Tables B-l, B-2,
and B-3.  Attention  is  now turned to discussing the  analysis associated with the
respecified  statistical models using all of the data.

               The Regression Results; Statistical Model 10
The respecified  statistical models  were tested for each of the selected disease
categories.  To  be more specific, Model 10 was tested with respiratory diseases
alone and with circulatory-respiratory diseases combined.   The regression results
for each disease category can be seen in Tables 7 and 8.   Submodels 1 through 4
indicate the lags  for the air pollution and meteorological variables.  Submodel
1 is not lagged;   Submodel 2  is lagged by one day;  Submodel 3 is lagged by  two
days;  and Submodel  4 is lagged by  three days.

Before proceeding  directly to the regression results, it is best to summarize
again the characteristics assumed inherent in the dependent variable (Vi1k)  of
Model 10.  All the outpatient medical services used  to treat a single disease
                                      77

-------
Table 7.  REGRESSION RESULTS OF STATISTICAL MODEL 10s  RESPIRATORY DISEASES
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people
in household
Household income
Race-Negro
Race - other
non-white
Physically fit
Somewhat phys-
ically fit
Drinking
Smoking index
Occupational ex-
posure index
Air pollution
Temp, humidity
index
Outpatient medi-
cal services
R2
Submodel 1 -
Coefficients-''
1700
4.0995E-01
9.2984E-04
(1.7641E-03)
-9.2609E-02
(4.4077E-02)
4.9017E-02
(7.0571E-02)
-2.2342E-04
(1.6566E-02)
1.3839E-06
(3.2721E-06)
-1.2499E-01
(1.0598E-01)
1.1757E-01
(1.8843E-01)
-3.6543E-02
(7.1782E-02)
-6.6018E-02
(5.5690E-02)
1.4501E-03
(6.4242E-04)
1.1919E-04
(9.8823E-05)
1.3806E-06
(4.5747E-03)
8.1786E-02
(3.6601E-02)
3.9050E-01
(1.5010E-01)

2.1991E-02
• unlagged
t statistics


0.5271
2.1011
0.6946
0.0135
0.4229
1.1793
0.6240
0.5091
1.1855
2.2573
1.2061
0.3018
2.2346
2.6017


Mean^7


46.0506
(16.0231)
0.6818
(0.5537)
0.8424
(0.3645)
3.3906
(1.7783)
12085.4412
(7525.6879)
0.0524
(0.2228)
0.0159
(0.1251)
0.1753
(0.3803)
0.5624
(0.4962)
12.4064
(37.9688)
152.0516
(247.8353)
3.4162
(5.3893)
61.2532
(34.8633)
53.0533
(8.0905)
14 .'75 39
(12.0912)

Submodel 2 - lagged 1 day
a/
Coefficients— t statistics
1700
1.7224E-01
9.4703E-04 0.5373
(1.7625E-03)
-9.1826E-02 2.0851
(4.4040E-02)
5.0257E-02 0.7127
(7.0520E-02)
-5.5410E-04 0.0335
(1.6546E-02)
1.3071E-06 0.3999
(3.2683E-06)
-1.2354E-01 1.1669
(1.0587E-01)
1.1621E-01 0.6177
(1.8814E-01)
-3.6802E-02 0.5132
(7.1711E-02)
-6.7155E-02 1.2070
(5.5637E-02)
1.4583E-03 2.2721
(6.4184E-04)
1.4583E-03 2.2721
(9.8761E-05)
1.5975E-03 0.3497
(4.5681E-03)
8.4906E-02 2.3605
(3.5969E-02)
4.4765E-01 3.0250
(1.4798E-01)

2.3885E-02
Meai£7


£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
61.7633
(35.2088)
52.9020
(8.1066)


                                                                (continued)
                                  78

-------
                                            Table  7.   (CONTINUED)
Submodel 3 - lagged 3 days
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people
in household
Household income
Race - Negro
Race - other
non-white
Physically fit
Somewhat phys-
ically fit
Drinking index
Smoking index
Occupational ex-
posure index
Air pollution
index
Temp, humidity
index
Outpatient med-
ical services
R2
Coefficients^
1700
3.2088E-01
9.8659E-04
(1.7643E-03)
-9.3276E-02
(4.4085E-02)
4.6437E-02
(7.0569E-02)
-4.1014E-04
(1.6564E-02)
1.2893E-06
(3.2721E-06)
-1.2677E-01
(1.0600E-01)
1.2076E-01
(1.8824E-01)
-3.2048E-02
(7.1742E-02)
-6.5781E-02
(5.5702E-02)
1.4623E-03
(6.4238E-04)
1.2433E-04
(9.8795E-05)
1.7257E-03
(4.5709E-03)
6.4037E-02
(3.6881E-02)
4.3036E-01
(1.4653E-01)

2.1868E-02
t statistics Mean—


0.5592 £/
2.1158 £/
0.6580 £/
0.0248 £/
0.3940 £/
1.1959 £/
0.6415 £/
0.4467 £/
1.1809 £/
2.2763 £/
1.2585 £/
0.3776 £/
1.7363 62.1665
(35.1278)
2.9370 52.9290
(8.1986)


Submodel 4 - lagged 4 days
Coefficients^
1700
2.8884E-01
1.0105E-03
(1.7641E-03)
-9.6809E-02
(4.4086E-02)
4.3497E-02
(7.0582E-02)
2.3213E-04
(1.6565E-02)
1.1461E-Q6
(3.2724E-06)
-1.2602E-01
(1.0601E-01)
1.2032E-01
(1.8821E-01)
-3.1869E-02
(7.1726E-02)
-6.3444E-02
(5.5724E-02)
1.4348E-03
(6.4241E-04)
1.2607E-04
(9.8778E-05)
1.9866E-03
(4.5709E-03)
4.6301E-02
(3.6696E-02)
4.5616E-01
(1.4446E-01)

2.1725E-02
t statistics Mean—


0.5728 £/
2.1959 £/
0.6163 £/
0.0140 £/
0.3502 £/
1.1887 £/
0.6393 £/
0.4443 £/
1.1385 £/
2.2334 £/
1.2763 £/
0.4346 £/
1.2617 62.1979
(35.2225)
3.1577 53.0916
(8.3442)


—' The standard  error  of  the  regression coefficient is  in parentheses.   E-01,  E  01,  E 00,  etc.,  indi-
   cate that  the decimal  place of the number is  to  be shifted to  the  left  by one place;  shifted  to
   the right  by  one  place;  or not shifted at all, respectively.

—/ Means are  untransformed; their standard deviations are in parentheses.

—* The mean for  this variable is  the  same as its mean in Submodel 1.  Only the name  of the lagged
   variables changed per model.
                                                79

-------
Table 8.  REGRESSION RESULTS OF STATISTICAL MODEL 10: CIRCULATORY-RESPIRATORY DISEASES
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people
in household
Household income
Race - Negro
Race - other
non-white
Physically fit
Somewhat phys-
ically fit
Drinking index
Smoking index
Occupational ex-
posure index
Air pollution
index
Temp, humidity
index
Outpatient med-
ical services
R2
Submodel 1 •
Coefficients—
3363
1.3190E 00
-1.6382E-03
(1.2708E-03)
2.4635E-04
(2.9157E-02)
2.9929E-03
(4.4089E-02)
1.7845E-03
(1.3087E-02)
-1.1933E-06
(2.2427E-06)
-9.6164E-02
(8.9548E-02)
8.0489E-02
(1.2691E--01)
-6.2167E-02
(4.5984E-02)
-6.0504E-02
(3.6337E-02)
7.9656E-04
(4.0020E-04)
6.0772E-05
(6.6437E-05)
6.2953E-03
(3.4506E-03)
2.1134E-02
(2.5430E-02)
2.4138E-01
(1.0057E-01)
8.0063E-03
- unlagged
T /
t statistics Hear.—


1.2891 54.3717
(16.2918)
0.0084 0.6375
(0.5613)
0.0679 0.8112
(0,3914)
0.1364 2.8944
(1.6443)
0.5321 10765.5367
(7/81.8663)
1.0739 0.0324
(0.1771)
0.6342 0.0167
(0.1280)
1.3519 0.1861
(0.3893)
1.6651 0.5031
(0.5001)
1.9904 10.8700
(40.2684)
0.9147 153.9242
(247.1794)
1.8244 2.6489
(4.8684)
0.8311 62.3909
(34.3420)
2.4001 54.3396
(8.1619)
13.9063
(12.6867)
Submodel 2 - lagged 1 day^
a/
Coefficients— t statistics
3363
1.2441E 00
-1.6180E-03 1.2742
(1.2698E 00)
1.3022E-04 0.0045
(2.9151E-02)
2.8894E-03 0.0655
(4.4082E-02)
1.8327E-03 0.1401
(1.3082E-02)
-JU1682S-06 0.5207
(2.2433E-06)
-9.6459E-02 1.0774
(8.9532E-02)
3.1491E-02 0.6425
(1.2684E-01)
-6.2172E-02 1.3523
(4.5976E-02)
-6.0654E-02 1.6696
(3.6328E-02)
7.9294E-04 1.9818
(4,(1011E-02)
6.0766E-05 0.9148
(6.6422E-05)
6.3640E-03 1.8453
(3.4489E-03)
1.9713E-02 0.7881
(2.5015E-02)
2.6135E-01 2.6355
(9.9166E-02)
8.3310E-03
Mean^-


£/
£/
£/
£/
£/
£/
£/
£/
sJ
sJ
sJ
£/
62.6497
(34.6665)
54.2546
(8.2262)
«i
                                                                      (continued)
                                       80

-------
                                             Table  8.   (CONTINUED)
Submodel 3 - lagged 3 days
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people
In household
Household income
Race - Negro
Race - other
non-white
Physically fit
Somewhat phys-
ically fit
Drinking index
Smoking index
Occupational ex-
posure index
Air pollution
index
Temp, humidity
index
Outpatient med-
ical services
R2
Coefficients^'
3363
1.4245E 00
-1.5595E-03
(1.2698E-03)
-9.2519E-04
(2.9156E-02)
2.6729E-03
(4.4103E-02)
1.9317E-03
(1.3086E-02)
-1.2578E-06
(2.2455E-06)
-9.6901E-02
(8.9581E-02)
8.3529E-02
(1.2687E-01)
-6.1298E-02
(4.5995E-02)
-6.1317E-02
(3.6338E-02)
7.9628E-04
(4.0027E-04)
6.2927E-05
(6.6441E-05)
6.3350E-03
(3.4490E-03)
-1.3033E-03
(2.5491E-02)
2.3656E-01
(9.8931E-02)

7.6485E-03
t statistics


1.2281
0.0317
0.0606
0.1476
0.5601
1.0817
0,6584
1.3327
1.6874
1.9894
0.9471
1.8368
0.0511
2.3912


Mean^


£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
£/
62.8473
(34.6274)
54.2279
(8.2513)


Submodel 4 - lagged 4 days
Coefficients^'
3363
1.3690E 00
-1.5932E-03
(1.2701E-03)
-1.7524E-03
(2.9143E-02)
1.4193E-03
(4.4101E-02)
2.0741E-03
(1.3083E-02)
-1.3074E-06
(2.2458E-06)
-9.6205E-02
(8.9583E-02)
8.1589E-02
(1.2684E-01)
-6.0687E-02
(4.5995E-02)
-6.0791E-02
(3.6335E-02)
7.9438E-04
(4.0019E-04)
6.1176E-05
(6.6455E-05)
6.3415E-03
(3.4484E-03)
-8.4495E-03
(2.5556E-02)
2.5834E-01
(9.9073E-02)

7.9576E-03
t statistics Meai£'


1.2544 £/
0.0601 c/
0.0322 £/
0.1585 c/
0.5821 £/
1.0739 £/
0.6432 £/
1.3194 cj
1.6731 £/
1.9850 £/
0.9206 £/
1.8390 £/
0.3306 62.7691
(34.5243)
2.6076 54.3663
(8.2780)


— The standard  error  of  the  regression  coefficient is  in parentheses.   E-01,  E 01,  E  00,  etc.,  Indi-
   cate that  the decimal  place  of  the number is  to  be shifted to  the  left by one place;  shifted  to
   the right  by  one  place;  or not  shifted at all, respectively.

—' Means are  untransformed; their  standard deviations are in parentheses.

— The mean for  this variable is the  same as its mean in Submodel 1.  Only  the name  of the lagged
   variables  changed per  model.

                                                 81

-------
incident per contact with the medical system were expressed  in  California Rela-
tive Value units.  The units were transformed to dollar values.   Hence,  the dol-
lar values would reflect the quantity of medical services  consumed per contact.

This section will discuss the regression results of Model  10 by  independent vari-
able.  The regression results for the respiratory disease  model  will be  analyzed
first (table 7), then the results of the circulatory-respiratory diseases com-
bined will be discussed (table 8).

Age of the Patient (
Respiratory Diseases - The estimated coefficients were not  significantly  differ-
ent from zero and, hence, do not appear to influence the consumption of out-
patient medical services per contact with the Kaiser system.  The  average age
of the patient consuming outpatient medical services for respiratory diseases
was 46 years.

Circulatory-Respiratory Diseases - The estimated coefficients for  age were signifi-
cantly different from zero at the 20 percent level for Submodel  1  in Table 8.
The coefficients in the other models were not statistically significant.

The signs of the coefficients in Model 10 were negative.  The hypothesized sign
for this variable was positive, i.e., the older the patient becomes, the  more
medical services he consumes.  The negative coefficient indicates  that he con-
sumes fewer medical services.

Two explanations can be given for the negative sign on the  coefficient.   One,
since the variable is barely significant at 20 percent, the results  should be
discounted;  i.e., there is a one in five chance of committing a Type I error on
the statistical test.  However, the average age for patients consuming outpatient
medical services for circulatory-respiratory illnesses is 54 years;   for  respira-
tory diseases it was 46.  This indicates that an older group of  patients  are
 Because of the nature of the study and the type of data being  used,  it was de-
 cided that any coefficient not significantly different from  zero  at  the 20
 percent level would be considered not statistically significant.
                                     82

-------
 obtaining treatment for circulatory-respiratory problems.  Hence, the second
 reason the age coefficient may be negative is as follows:  Most circulatory-
 respiratory diseases in older people may be severe enough to require hospitaliza-
 tion.   Therefore,  fewer medical services are consumed on an outpatient basis.
 Younger patients,  with a probable better state of health, would most likely not
 be  hospitalized.   Treatment of the diseases for the younger patients would be at
 a clinic and,  proportionately, they would consume more outpatient medical ser-
 vices  per visit.

 Sex of the Patient (X_ .,)
 Respiratory Diseases  - The  estimated coefficients (for all lags)  of this variable
 were  significantly  different  from zero at  the 5 percent level in  Model 10.  The
 signs of  the  coefficients were  negative, which indicated that women consumed fewer
 medical services  than men.  This  is  not unexpected when one considers  that the
 incidence of  many respiratory diseases are lower for women than men.

 Circulatory-Respiratory Diseases  - The regression coefficients were not statistic-
 ally significant.   This would tend to indicate that, at least with circulatory-
 respiratory diseases  combined,  sex does not have a discriminating role in the con-
 sumption  of outpatient medical  services.   In all the disease categories,  over 60
 percent of the patients consuming outpatient medical services were women.

 Marital Status (X-  ., )
                  JJ.J K
 Respiratory Diseases  - The  coefficients of the marital  status variable were  not
 statistically significant.  This  implies that marital status  has  no effect on the
 consumption of medical  services.   Over 84  percent  of the patients receiving  out-
patient medical services were married.

Circulatory-Respiratory Diseases  - As  with respiratory  diseases,  the marital status
coefficients were not  statistically  different from  zero.   Over 81 percent  of the
 This is not to argue that older patients may not visit a clinic more than younger
 patients.  It is argued that, proportionately, they may consume fewer medical
 services per visit.
                                     83

-------
patients receiving treatment for circulatory-respiratory diseases  were married.

Number of People in the Patient's Household
Respiratory Diseases - The estimated coefficients of  this variable  were not sta-
tistically significant.  Although the average number  of people within the patient's
household was 3.39, this appeared not to influence the consumption  of outpatient
medical services per visit to the clinic.  However, while crowding  appears to  have
no effect on the severity of the disease state, it may still affect the number
of visits to the clinic.  The latter point was not tested by this model.

Circulatory- Respiratory Pis eases - Since crowding had no effect on  the consumption
of medical services used in treating respiratory diseases,  it was not surprising
to find it statistically insignificant with circulatory-respiratory diseases.
The average number of people in the patient's household who were suffering from
circulatory- respiratory diseases was 2.89.  Once more this  indicates  that an older
set of people were being analyzed in the circulatory- respiratory disease  category.

Household Income
Respiratory Diseases - Household income was included in this study  in  an  attempt
to describe the patient's ability to make expenditures in lieu of consuming medi-
cal services which would preserve or improve his state of health.   Examples of
such expenditures would be those made for sound housing and nutritional food.
The coefficients of the household income variables were not statistically signi-
ficant in any of the submodels of 10.

It would appear, at least for outpatient medical services, that household income
does not play a significant role in this respect.  One reason for this, perhaps,
is the availability of income supplements within the Portland area  to  low- income
families.  These would include welfare, availability of surplus foods, and/or
food stamps.  The income supplements, and the opportunity for all Kaiser  members
to consume the same kinds of medical services, would tend to minimize  any differ-
ences in the consumption of medical services as between families having differ-
ent income levels.  The mean household income of patients consuming medical ser-
vices for respiratory illnesses was $12,085.

                                     84

-------
 Circulatory-Respiratory Diseases - The coefficients were not significantly dif-
 ferent  from zero.   The reasons for the nonsignificance are the same as those given
 above for the respiratory diseases.

 The  household income for patients consuming outpatient medical services for cir-
 culatory-respiratory illnesses was $10,766.  Again, this reflects the older age
 group being examined in this disease category.  Based on age, family size, and
 income,  it would appear that more patients in the circulatory-respiratory cate-
 gory are retired than is the case for those afflicted with respiratory diseases
 only.

 Race (X6i1k'  X7ijk>
 Respiratory Diseases - The coefficients of the two race variables were not sta-
 tistically significant.   This would imply that race is not important in the con-
 sumption of outpatient medical services as between Negroes (X,..,), other non-
                                                              ul J iC
 whites  (Xyj-fi,)*  ^d whites.   Of the contacts with the Kaiser system which re-
 sulted  in outpatient medical services being consumed, approximately 5.2 percent
 of the  contacts  were by Negroes,  1.6 percent by other non-whites, and 93.2 per-
 cent by  whites.

 Circulatory-Respiratory Diseases  - Neither of the race coefficients were statis-
 tically  significant.   Of the contacts with the Kaiser system resulting in the
 consumption of medical services,  approximately 3.2 percent of the contacts were
 by Negroes,  1.7  percent by other  non-whites, and the other 95.1  percent by whites.

 Physical Fitness (X8ijk» X9jHk>

 Respiratory  Diseases  - Physical fitness was expressed by two qualitative vari-
 ables.   Xfl.., represented "a great deal of time and energy expended by the patient
          OIJ K
 in being physically  fit;"  X   ,  represented "some time and energy expended by
                             yx j K
 the patient  in being  physically fit."  Statistically these were  tested against
 the third  category,  expressed as  "very little time and energy expended being
physically  fit."  It  was expected that the more physically fit patient would con-
sume fewer medical services.
                                      85

-------
With respiratory diseases, the coefficients were not  significant  at the 20 per-
cent level.  It would appear that physical fitness  (as measured here)  does not
influence the consumption of outpatient medical services  for respiratory dis-
eases .

Of the contacts with the Kaiser system which resulted in  the consumption of
medical services, 17.53 percent indicated they spent  a great deal of time and
energy being physically fit; 56.24 percent indicated  they spent some time and
energy being physically fit; 26.23 percent spent very little time and  energy
being physically fit.

Circulatory-Respiratory Diseases - The coefficient  of Xgi fc  was significantly
different from zero at the 20 percent level in all  submodels.   XQ. ., was statis-
tically significant at the 10 percent level in all  submodels.   The  signs on both
of the coefficients were negative, as expected.  The  coefficient  of Xg. .-  was
larger than Xg  ,  (-0.0622 versus -0.0605, respectively).  This would  imply that
more physically fit patients consume fewer medical  services.  There is a sus-
pected association between lack of physical exercise  and  coronary heart disease
[20, p. 15], and lack of exercise and circulatory problems in general.  Hence,
with circulatory-respiratory diseases it was not a  surprise  that  the physical
fitness variables were statistically significant, but not statistically signifi-
cant when the respiratory diseases were analyzed alone.

Of the patients contacting the Kaiser system and consuming outpatient  medical
services for circulatory-respiratory diseases, 18.6 percent,  50.3 percent, and
31.1 percent indicated they spent a great deal, some, and very  little  time and
energy, respectively, being physically fit.

Drinking
Respiratory Diseases - The estimated coefficients for Xin  , were  significantly
                                                        JLUZLj 1C
different from zero at the 5 percent level in all submodels.   The  variable mea-
sured how many times a year a respondent drank six  drinks, eight cans of beer,
or a bottle of table wine.  The estimated coefficients  of  the  variable had the
expected positive signs.  This would tend to support the hypothesis that heavy
drinking can affect a state of health and influence the consumption of outpatient
medical services.
                                     86

-------
The average number of times  a year patients consumed alcohol excessively (as
defined  in the  paragraph above)  was 12.4.   The mean reflects many zero values
assigned to respondents  who  indicated they had not consumed alcoholic beverages
excessively during the 12 months prior to  the household interview date.  The
standard deviation of the mean was 37.9.

Circulatory-Respiratory  Diseases - For all the submodels,  the coefficients were
statistically significant at the 5 percent level.   All the coefficients had the
expected positive  signs.   The average number of times per  year patients indicated
they drank excessively was 10.9.  The standard deviation for the mean was 40.3.

Cigarette Smoking  Index  (X,,..,)

Respiratory Diseases  - While the coefficients had  the right positive signs, none
were significantly different from zero at  the 20 percent level.   The coefficient
in Submodel 4 came closest to being significantly  different from zero at the 20
percent  level.  The index took a value of  zero if  the patient indicated he had
never regularly smoked cigarettes in his life.   Of the 2,439 respondents to the
household interview,  991, or 40.6 percent, indicated they  had not smoked regu-
larly in the past.  The  mean smoking index for patients consuming medical ser-
vices was 152.1, with a  standard deviation of 247.2.

If any disease  category  would have been most affected by cigarette smoking, res-
piratory diseases  should have been.   There were a  number of potential problems
with the cigarette smoking index variable  which could have resulted in its not
being significant.  Perhaps  not  enough weight in the index was attached to the
cigarette smoking  habits  of  former smokers.   The variable  could be respecified
to include only the number of cigarettes smoked per day, the number of years
the patient has smoked,  or whether the patient has ever smoked or not.

It is also quite possible that patients suffering  from diseases  most affected
by cigarette smoking  (chronic bronchitis and emphysema)  would receive propor-
tionately more of  their medical  services in the hospital.   This  would particu-
larly be true in more severe disease cases.   Also, once a  patient has a dis-
ease affected by smoking,  he may visit the doctor  more often but the amount of
medical  services consumed per visit would  remain constant.

                                       87

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Circulatory- Respiratory Diseases - The coefficients were not  statistically signi-
ficant in any of the models.  If the coefficients were not  statistically signifi-
cant with respiratory diseases, the fact they were not significant  with circula-
tory-respiratory diseases combined was not surprising.  Again,  the  lack of sta-
tistical significance may be due to the same reasons  indicated  for  the  respira-
tory disease category above.  The mean smoking index  for patients consuming
medical services was 153.9, with a standard deviation of 247.2.

Occupational Exposure Index
Respiratory Diseases - This variable was expressed as an index.  A value  of  zero
was assigned to patients who did not work.  Values greater  than  zero were assigned
to each working patient, based upon the number of hours worked per day  times a
weighting factor representing job-related exposure to particulates.

The coefficients were not significantly different from zero at the 20 percent
level.  This is not surprising given the fact that 23 percent of the subscribers
in the 5 percent sample were employed in clerical-sales [17, p.  301], resulting
in a low occupational exposure index.  Also, approximately  39 percent of  the
respondents to the questionnaire did not work at all.  The mean occupational ex-
posure index of those seeking medical services was 3.4; the standard deviation
was 5.4.

Circulatory-Respiratory Diseases - The coefficients were statistically  significant
at the 10 percent level.  The signs of the coefficients were positive,  as expected.
Why the coefficients would be statistically significant for circulatory-respira-
tory diseases, and not for respiratory diseases alone, is not known.  The mean
occupational exposure index for those consuming medical services was 2.6; the
standard deviation was 4.9.

Air Pollution
Respiratory Diseases - The coefficients of the air pollution variables were signi
ficantly different from zero for each of the submodels in Table  7,  as follows:
     Submodel 1 - significantly different from zero at the 5 percent level;
     Submodel 2 - significantly different from zero at the 2 percent level;

                                     88

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     Submodel 3 - statistically significant at the 10 percent level;
     Submodel 4 - not statistically significant at the 20 percent level.

All coefficients had positive signs, as expected.  The null hypothesis that
deterioration in air quality causes no increase in the consumption of medical
services per outpatient contact with the medical system is rejected.

The highest level of statistical significance for the air pollution coefficient
occurred in Submodel 2, where the variable was lagged by one day.  This model
                      2
also had the highest R  of the four models.  This would tend to confirm the
belief expressed earlier that there is a delay between exposure to air pollution
and contact with the medical system.

Using the coefficients from each of the submodels in which they were statistically
significant, a 20 microgram increase in air pollution, from 60 to 80 micrograms
per cubic meter, would increase outpatient medical costs per contact as follows:
          Submodel 1 - an increase of 3.3 cents;
          Submodel 2 - an increase of 3.5 cents;
          Submodel 3 - an increase of 2.4 cents.

The average exposure to air pollution (lagged one day) of patients seeking out-
patient medical services was 61.8 micrograms per cubic meter.  The standard de-
viation was 35.2.  The means and standard deviations for each of the variables
may be seen in Table 7.

Circulatory-Respiratory Diseases - The air pollution coefficients were not sta-
tistically significant.  The null hypothesis that deterioration in air quality
causes no increase in the consumption of medical services per outpatient con-
tact with the medical system is not rejected.

One reason, perhaps, why air pollution is not statistically significant is that
many circulatory problems may be severe enough to require hospitalization.  Any
outpatient medical services consumed for treatment of circulatory problems would
be routine, thereby limiting the amount of medical services consumed.  The aver-
age unlagged exposure to air pollution for patients obtaining medical care was

                                      89

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62.4 micrograms.  The standard deviation about the mean was  34.3.   The means and
standard deviations for each of the other lags may be seen in  Table 8.

Meteorological Conditions  (xiA.t.i,)

Respiratory Diseases - The estimated coefficients for the T.H.I, variable were
statistically significant at the 1 percent level for all the models in Table 7,
with the most significance occurring when the variable was lagged  three days.
All of the coefficients had the expected positive signs.  This would tend to
support the hypothesis that the combined factors of temperature and humidity
influence the consumption of medical services.

The mean T.H.I, value (unlagged) of those consuming outpatient medical services
for respiratory diseases was 53.0, with the standard deviation being 8.2.  The
mean does not compare to the empirical evidence (previously  cited)  establishing
a T.H.I, of 70 as causing 10 percent of the population to become uncomfortable.
However, since this study is dealing with respiratory diseases, one would ex-
pect the patients to be considerably more susceptible to temperature and humidity
than would members of the general population.  This would imply that the T.H.I.
values for these patients could be lower than those cited in the empirical stud-
ies, still cause discomfort to the patient afflicted with respiratory diseases
and, hence, precipitate an increase in the consumption of outpatient medical ser-
vices used to treat the diseases.

Circulatory-Respiratory Diseases - The coefficients of the T.H.I,  variable were
significantly different from zero in each of the models in Table 8,  as follows:
     Submodel 1 - significantly different from zero at the 2 percent level;
     Submodel 2 - significantly different from zero at the 1 percent level;
     Submodel 3 - statistically significant at the 2 percent level;
     Submodel 4 - statistically significant at the 1 percent level.

The signs of the coefficients were positive, as expected.

The mean T.H.I, value (lagged two days) for patients suffering from circulatory-
respiratory diseases was approximately 54.2, with a standard deviation of 8.3.

                                     90

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The same argument  applies  to circulatory-respiratory diseases as was used with
the respiratory  diseases above.   One would expect that patients suffering from
circulatory-respiratory  illnesses would be more susceptible to temperature and
humidity and, hence,  consume more medical services.

Summary
Respiratory Diseases  - The following coefficients of the variables were signifi-
cantly different from zero in Model  10  at 20  percent or higher:  Sex (X?   ) ;
                                                                        *• J-J K
Drinking habits  (x10i'tJ;  Air pollution (X13±.k)» except in Submodel 4 of (10);
and Meteorological conditions -  T.H.I.  (X.,  ., ).   The overall F tests for regres-
                                          J.'HjK
sion on all four models were statistically significant at the 1 percent level.

Circulatory-Respiratory Diseases - In Model 10 the following coefficients were
statistically significant  at 20  percent or higher:  Age (Xi.!! significant only
 in Submodel 1 and with  a negative  sign;   Physical fitness  (Xg .,  and Xq . .. ) ;
 Drinking habits  (X._  ,);  Occupational exposure  (Xio--^*  Meteorological  condi-
 tions - T.H.I.  (X,,. .,).   The  overall  F tests  for regression on all four models
were statistically  significant at  the  5 percent  level.

                The Regression Results; Statistical Model 11
Model 11 was specified  in  an attempt to determine whether air pollution has  an
effect on the number of contacts with  the medical system where the cost per  con-
tact may be more or less constant.  If the  hypothesis  that air pollution has no
effect on the consumption  of medical services  per contact with the medical system
were accepted,  then it  was  felt the effects of air pollution on the number of
contacts with the system could be  tested indirectly with (11).   The main fault
with (11) was that  only socioeconomic-demographic characteristics  of patients
contacting the  Kaiser system were  accounted for.   That  is,  the socioeconomic-
demographic characteristics of those who were  at  risk  (at risk to  contract a
disease and use the Kaiser facilities)  in each census  tract were not taken into
account within  the  independent variables unless  they contacted the Kaiser system.

As a result of  the  pretest  regressions, only respiratory diseases  were included
in the analysis.  Given a  severe budget constraint on  the funds available for
                                      91

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computer use, Model 11 was tested using only a one-day lag.  The  regression re-
sults of these models may be seen in Table 9, which also  contains  the means and
standard deviations of the variables used in the model.

The following variables were statistically different  from zero  at the 20 percent
level or higher in statistical Model 11: Sex (X2ic.); Household income  (X5ic.j),
which had a positive relationship with the dependent  variable instead of the
negative relationship hypothesized; Drinking habits (X7ic-s)» and  Smoking (X8ic-j)'
The overall F test for regression was statistically significant at the  5 percent
level.

The results of Model 11 should be interpreted with caution.  There were too few
multiple observations per census tract per day resulting  in the consumption of
outpatient medical services.  Table 7 shows that 1700 patients  with respiratory
illnesses contacted the Kaiser system and consumed outpatient medical services.
Table 9 shows that even after aggregation over the census tract for the two-year
study period, there were still 1,569 observations that entered  regression.   This
means that during the study period only 131 observations  came from the  same cen-
sus tract on the same day; the other 1,569 observations were single observations
per census tract.  In most instances, then, the independent variables were  indi-
vidual patient characteristics and not aggregate data as  originally specified.
Hence, a lack of a sufficient number of observations  per  census tract prohibited
testing whether air pollution had an effect on the number of contacts with  the
medical system.

                     Statistical Results;  A Discussion
The statistical results of the air pollution coefficients in Model 10 (respira-
tory diseases) tend to lead to a rejection of the null hypothesis  that  deteriora-
tions in air quality cause no increase in the consumption of medical services
(per contact with the medical system) to treat respiratory diseases. Also, the
results would tend to confirm that there is a delay between exposure to air
pollution and meteorological conditions and contact with  the medical system.
Using the best prediction model - Submodel 2 - an increase in air pollution by
20 micrograms (from 60 to 80 micrograms per cubic meter)  would  result in an esti-
mated 3.5 cent increase in outpatient medical costs (for  respiratory diseases)
per contact with the medical system.

                                     92

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           Table  9.   REGRESSION RESULTS OF STATISTICAL MODEL 11:
                        RESPIRATORY DISEASES - ONE DAY LAG
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people in household
Household income
Race - non-white
Drinking
Smoking index
Occupational exposure index
Air pollution
Temperature humidity index
Per capita costs
R2
a/
Coefficients—
1569
-2.4077E 00
1.0900E-03
(2.2164E-03)
9.6563E-04
(5.9370E-04)
-4.7287E-04
(8.9162E-04)
3.5658E-03
(2.0714E-02)
6.9822E-06
(4.1046E-06)
3.1119E-04
(1.1727E-03)
1.0742E-03
(7.8481E-04)
1.7571E-04
(1.2237E-04)
4.0458E-03
(5.7227E-03)
-4.7287E-04
(8.9162E-04)
3.1119E-04
(1.1727E-03)

1.1830E-02
t Statistics


0.4918
1.6265
0.5303
0.1722
1.7011
0.2654
1.3687
1.4359
0.7070
0.5303
0.2654


Mean*-7


46.0153
(16.0014)
65.6474
(51.8897)
84.4806
(36.1985)
3.3996
(1.7804)
12112.6119
(7540.2050)
7.0746
(25.6481)
12.8749
(39.1389)
154.0181
(250.5819)
3.4413
(5.4109)
61.7121
(34.9227)
53.0149
(8.0738)
1.6083
(2.4151)

a/
—  The standard error of  the  regression  coefficient  is  in parentheses.  E-01,
   E 01, E 00, etc., indicate that  the decimal  place of the number  is to be
   shifted to the  left by one place;  shifted  to the  right by one  place; or
   not shifted at  all, respectively.

—  The standard deviation about  the mean is in  parentheses; means are untrans-
   formed.

                                      93

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The regression results indicate that the procedures used  in the  study  hold prom-
                                                              2
ise for quantifying the medical costs of air pollution.   The R  's  for  each regres-
sion are low; however, this is not surprising.  While the X  fc's may be the perti-
nent explanatory variables, their influence on Y.., may be weak  compared to the
influence of the random disturbances.  This particularly  seems  to  be the case for
relationships describing household behavior that have been estimated from cross-
sections data [31, p. 234],  Other health studies  research using multiple regres-
                                          2
sion have also been characterized by low R 's  [33, 34, 35].  In  a  study of this
kind there is more concern about the reliability of the estimated  structural
parameters than about the size of the coefficient  of multiple determination
[5, p. 248].

The theoretical framework for this study, and the  statistical models derived from
it, were a simplified description of a complex phenomenon.  The  consumption of
medical services is dependent not only on happenings in the present time period,
but also on occurrences which may have happened in the patient's past  and, hence,
are difficult to determine and quantify.

As an economic cost it would appear that air pollution has a minimal effect on
increasing the quantity of outpatient medical services consumed  in treating res-
piratory diseases.  The reasons are that many such visits are routine  and, while
air pollution may affect the number of visits, it  does not dramatically affect
the cost per visit.  This is important to know, because it substantially reduces
the need to do additional research on the effects  of air  pollution on  outpatient
medical consumption, and suggests other areas in which research  on the medical
costs of air pollution may be more productive.  These recommendations  for future
research have been previously addressed in Chapter II.

One cannot finish this section without a brief comment concerning  the  adequacy
of using the C.R.V.S. in the models as a proxy for the quantity  of medical ser-
vices rendered, particularly as it refers to outpatient medical  services.  There
are a variety of different medical services that can be provided within a given
office call.  To adequately reflect the multitude  of potential outpatient medical
services, the C.R.V.S. (Kaiser adapted), while detailed,  would have to be infi-
nitely more so than they are now.  As a first step toward quantifying  the output
of physician and associated medical personnel in rendering medical services, a

                                     94

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detailed study of each office and medical procedure would have to be undertaken.
This would require a detailed manpower study.  Some kind of weighting scheme
could then be developed for each medical procedure, reflecting the difficulty
of the tasks performed.  While the C.R.V.S. is a good approximation of the quan-
tity of medical services consumed, it does have limitations which should be recog-
nized in its use.
                                      95

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62.   	, Environmental Health Service, Air Quality Criteria for Carbon
      Monoxide.  Washington, D.C., National Air Pollution Control Administration,
      March 1970 (National Air Pollution Control Administration Publication
      No.  AP-62).

63.   	, Environmental Health Service, Air Quality Criteria for Hydro-
      carbons .  Washington, D.C., National Air Pollution Control Administration,
      March 1970 (National Air Pollution Control Administration Publication
      No.  AP-64).

64.   	, Environmental Health Service,  Air Quality Criteria for Photo-
      chemical Oxidants.  Washington, D.C., National Air Pollution Control Admin-
      istration, March 1970) (National Air Pollution Control Administration
      Publication No. AP-63).

65.   U.S. Public Health Service, Health Services and Mental Health Administra-
      tion, The Health Consequences of Smoking;  A Report of the Surgeon General;
      1971.  Washington, D.C., U.S. Government Printing Office (Department of
      Health, Education, and Welfare Publication No. HSM 71-7513).

66.   Wall Street Journal, "The Health Factory:  Mammoth Prepaid Plan Trims
      Medical Costs, Wins Praise for Care."  San Francisco edition, p. 1, col. 6,
      April 26, 1971.


                                     100

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67.   Wendroff, Burton, Theoretical Numerical Analysis.  New York: Academic
      Press, 1966.

68.   Winkelstein, Warren Jr., e£ al., "The Relationship of Air Pollution and
      Economic Status to Total Mortality and Selected Respiratory System Mortality
      in Men."  Archives of Environmental Health 14:162-171, 1967.

69.   Zeidberg, L. D., R. J. M. Horton, and E. Landau, "The Nashville Air Pollu-
      tion Study:  VI.  Cardiovascular Disease Mortality in Relation to Air Pollu-
      tion."  Archives of Environmental Health 15:225-236, 1967.
                                     101

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                         XI.  APPENDICES
                                                         Page
A.   Disease Data Retrieval System	   102
B.   Pretest Regression Results 	   123

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                                APPENDIX A
                      DISEASE DATA RETRIEVAL SYSTEM

Disease Classified                                         I.C.D.A.    T Codes
I.   Respiratory System
     A.   Upper respiratory neoplasms
          1.   Malignant neoplasms, upper respiratory
               a.  Malignant neoplasm of nose (internal
                   and nasal cavities)	   160.0
               b.  Malignant neoplasm of maxillary sinus.   160.2
               c.  Malignant neoplasm of other specified
                   accessory sinuses	   160.8
               d.  Malignant neoplasm of site unspeci-
                   fied	   160.9
               e.  Malignant neoplasms of larynx	   161.0
          2.   Benign neoplasms, upper respiratory
               a.  Benign neoplasm, nose, nasal cavi-
                   ties, middle ear, and accessory
                   sinuses	   212.0
               b.  Benign neoplasm of larynx	  212.1
     B.   Upper respiratory infections
          1.   Influenza - acute
               a.  Influenza with pneumonia	   480.0
               b.  Influenza, unqualified	   481.0
               c.  Influenza, respiratory	   481.1
               d.  Influenza, respiratory and digestive
                   system	   481.2
          2.   Other and unspecified upper respiratory
               infection - chronic
               a.  Hypertrophy of tonsils and adenoids...   510.0
               b.  Chronic pharyngitis	   512.0
               c.  Chronic nasopharyngitis	   512.1
               d.  Chronic maxillary sinusitis	   513.0
               e.   Chronic frontal sinusitis	   513.1
               f.   Chronic sinusitis,  other specified....   513.8
               g.   Chronic sinusitis,  unspecified  and
                   pansinusitis	   513.9
                                     102

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Disease Classified                                        I.C.D.A.     T Codes
               h.  Deflected nasal septum....	  514.0
               i.  Nasal polyp	  515.0
               j.  Chronic laryngitis	  516.0
               k.  Turbinate hypertrophy	  517.6
          3.   Other and unspecified upper respiratory
               infections - acute
               a.  Acute nasopharyngitis (common cold)...  470.0
               b.  Acute maxillary sinusitis	  471.0
               c.  Acute frontal sinusitis	  471.1
               d.  Acute sinusitis, not specified	  471.4
               e.  Acute sinusitis, viral	  471.5
               f.  Acute sinusitis, bacterial	  471.6
               g.  Acute sinusitis, not specified,
                   antibiotic given	  471.7
               h.  Acute sinusitis, other specified
                   sites	  471.8
               i.  Acute sinusitis, unspecified and
                   pansinusitis	 471.9
               j.  Acute pharyngitis, not specified	  472.0        311
               k.  Acute pharyngitis, viral	  472.1
               1.  Acute pharyngitis, bacterial	  472.2
               m.  Acute pharyngitis, not specified,
                   antibiotic given	  472.3
               n.  Acute pharyngitis, other	  472.9
               o.  Acute tonsillitis, not specified	  473.0
               p.  Acute tonsillitis, viral	  473.1
               q.  Acute tonsillitis, bacterial	  473.2
               r.  Acute tonsillitis, not specified,
                   antibiotic given	  473.3
               s.  Acute laryngitis and tracheitis, not
                   specified, no antibiotic given	  474.0
               t.  Acute laryngitis and tracheitis,
                   viral	  474.1
               u.  Acute laryngitis and tracheitis,
                   bacterial	  474.2
               v.  Acute laryngitis and tracheitis, not
                   specified, antibiotic given	  474.3
                                     103

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Disease Classified                                        I.C.D.A.     T  Codes
               w.  Acute upper respiratory infection
                   of multiple or unspecified sites	    475.0
               x.  Epistaxis	    783.0
               y.  Change in voice	    783.5      335,337
               z.  Stridor	    783.6         336
          4.   Nonspecific respiratory complaints
               a.  Hemoptysis	    783.1
               b.  Dyspnea	    783.2
               c.  Cough NOS	    783.3
               d.  Excess of sputum	    783.4
               e.  Chest pain	    783.7         401
               f.  Sighing respiration, wheezing	                  407
               g.  Choking	                  408
               h.  Sneezing	                409
               i.  Purulent sputum	                  414
               j.  Other respiratory symptoms	                  419
               k.  Other diseases of the respiratory
                   system	    517.9
                   11.  Nasal discharge	                284
                   22.  Nasal obstruction	                  285
                   33.  Nasal congestion	                  290
                   44.  Pain of sinuses	                  291
                   55.  Post-nasal discharge	                  294
                   66.  Chronic post-nasal drip	                  298
                   77.  Other symptoms of nose	                  299
                   88.  Recurrent sore throat	                  310
     C.   Lower respiratory infection
          1.   Tuberculosis
               a.  Pulmonary tuberculosis, active,
                   minimal	    002.0
               b.  Pulmonary tuberculosis, active,
                   moderately advanced	    002.1
               c.  Pulmonary tuberculosis, active,
                   far advanced	    002.2
               d.  Pulmonary tuberculosis, active,
                   stage unspecified	    002.3

                                     104

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Disease Classified                                        I.C.D.A.     T Codes
               e.  Pulmonary tuberculosis, miliary NOS...   002.4
               f.  Status following surgical collapse
                   of lung	   002.5
               g.  Chromogenic acid-fast bacilli	   002.6
               h.  Activity unspecified	   002.9
               i.  Pleurisy specified as tuberculosis....   003.0
               j.  Pleurisy with effusion, without
                   mention of cause	   003.1
               k.  Primary tuberculosis complex with
                   symptoms	   004.0
               1.  Other respiratory tuberculosis	   007.0
               m.  Suspected tuberculosis	   793.2
          2.   Acute bronchitis
               a.  Bronchitis, not specified, no anti-
                   biotic given.	   500.0
               b.  Bronchitis, viral	   500.1
               c.  Bronchitis, bacterial	   500.2
               d.  Bronchitis, not specified, anti-
                   biotic given	   500.3
               e.  Bronchitis, unqualified	   501.0
          3.   Chronic bronchitis and emphysema
               a.  Bronchitis with emphysema	   502.0
               b.  Emphysema without mention of
                   bronchitis	   527.1
          4.   Chronic bronchitis without mention of
               emphysema
               a.  Other (without emphysema)	   502.9
               b.  Bronchiectasis (with or without
                   bronchitis)	   526.0
          5.   Pneumonia
               a.  Friedlander's B. (lobular)	   490.0
               b.  Pneumococcus (lobular)	   490.1
               c.  Staphylococcus (lobular)	   490.2
               d.  Streptococcus (lobular)	   490.3

                                     105

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Disease Classified                                         I.C.D.A.      T  Codes
               e.  Other specified organism or cause
                   (lobular)	    490.8
               f.  Unspecified organism or cause
                   (lobular)	    490.9
               g.  Bronchopneumonia, Friedlander's	    491.0
               h.  Bronchopneumonia, pneumococcus	    491.1
               i.  Bronchopneumonia, staphylococcus	    491.2
               j.  Bronchopneumonia, streptococcus	    491.3
               k.  Bronchopneumonia, other specified
                   organism or cause.....	    491.8
               1.  Bronchopneumonia, unspecified
                   organism or cause.	    491.9
               m.  Primary atypical pneumonia	    492.0
               n.  Friedlander's B	    493.0
               o.  Pneumococcus	    493.1
               p.  Other specified organism or cause....    493.8
               q.  Unspecified organism or cause	    493.9
          6.   Respiratory diseases of the newborn
               a.  Pneumonia of newborn...	    763.0
               b.  Hyaline membrane (disease) (lung)....    773.0
               c.  Other respiratory distress	    773.1
          7.   Other and unspecified diseases of the
               respiratory system - chronic
               a.  Nonspecific respiratory disease,
                   secondary to smoking..,	    503.0
               b.  Empyema	    518.0
               c.  Abscess of lung	    521.0
               d.  Pain in chest	    783.7
          8.   Other and unspecified diseases of the
               respiratory system - acute
               a.  Unspecified respiratory infection,
                   bacterial	    476.2
               b.  Unspecified respiratory infection,
                   organism unspecified, antibiotic
                   given	    476.3
               c.  Pleurisy, without mention of effu-
                   sion or tuberculosis	    519.0

                                     106

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Disease Classified                                        I.C.D.A.     T Codes

               d.  Pleurisy with effusion, with bac-
                   terial cause other than tuberculo-
                   sis	    519.1
               e.  Pleurisy with effusion of unknown
                   etiology	    519.2
               f.  Pleurisy, other specified forms of
                   effusion, except tuberculosis	    519.9
               g.  Spontaneous  pneumothorax	    520.0

               h.  Pulmonary congestion and hypostasis..    522.0

               i.  Pulmonary collapse (1 year and over).    527.0

               j.  Acute  pulmonary edema without men-
                   tion of  heart	    527.2

          9.    Specific diseases to be analyzed
               a.  Spontaneous  pneumo thorax	    520.0

               b.  Acute  pulmonary edema without men-
                   tion of  heart	    527.2

               c.  Hemoptysis	    783.1

               d.  Dyspnea	    783.2
               e.  Cough  NOS	    783.3

               f.  Excess sputum	    783.4

    D.    Lower respiratory
          1.    Malignant  neoplasm, lower respiratory
               a.  Malignant neoplasm of trachea
                   (primary or  NOS)	      162.0
               b.  Malignant neoplasm of bronchus and
                   lung	      162.1
               c.  Malignant neoplasm, pleura, speci-
                   fied as  primary	      162.2
               d.  Malignant neoplasm of lung, unspeci-
                   fied as  to whether primary or secon-
                   dary	      163.0
               e.  Malignant neoplasm of mediastinum...      164.0

          2.    Benign neoplasm  of the lower respira-
               tory system
               a.  Benign neoplasm of trachea	      212.2

               b.  Benign neoplasm of bronchus and
                   lung	      212.3
                                     107

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Disease Classified                                         I.C.D.A.      T Codes
               c.  Benign neoplasm of pleura	     212.4
               d.  Benign neoplasm, mediastinum	     212.5
               e.  Benign neoplasm, unspecified site....     212.9

II.  Allergies affecting respiratory system
     A.   Asthma
          1.   Asthma due to pollen	     241.0
          2.   Asthma due to dander or dandruff	     241.1
          3.   Asthma due to feathers	     241.2
          4.   Asthma due to dust	     241.3
          5.   Asthma due to food	     241.4
          6.   Asthma due to cosmetics	     241.5
          7.   Asthma due to drugs	     241.6
          8.   Asthma with multiple allergens	     241.8
          9.   Asthma due to other and unspecified
               causes	     241.9
     B.   Hay Fever
          1.   Hay fever due to pollen	     240.0
          2.   Hay fever due to dander or dandruff	     240.1
          3.   Hay fever due to feathers	     240.2
          4.   Hay fever due to dust.	     240.3
          5.   Hay fever due to cosmetics	     240.5
          6.   Hay fever due to drugs	     240.6
          7.   Hay fever with multiple allergens........     240.8
          8.   Hay fever due to other and unspecified
               causes	     240.9
     C.   Specific diseases
          1.   Hay fever due to dust	     240.3
          2.   Hay fever due to other and unspecified
               causes	     240.9
          3.   Asthma due to dust	     241.3
          4.   Asthma due to other and unspecified
               causes	     241.9

                                     108

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Disease Classified                                        I.C.D.A.     T Codes
III. Other Allergies and Skin Diseases
     A.   Eczema
          1.   Allergic eczema or dermatitis, pollen	   244.0
          2.   Allergic eczema or dermatitis, dander
               or dandruff	   244.1
          3.   Allergic eczema or dermatitis due to
               internal agent, feathers	   244.2
          4.   Allergic eczema or dermatitis due to
               internal agent, dust	   244.3
          5.   Allergic eczema or dermatitis due to
               internal agent, food	   244.4
          6.   Allergic eczema or dermatitis due to
               internal agent, cosmetics	   244.5
          7.   Allergic eczema or dermatitis due to
               internal agent, drugs	   244.6
          8.   Allergic eczema or dermatitis due to
               other and unspecified internal agents	   244.9
     B.    Other allergies
          1.   Angioneurotic edema due to pollen	   242.0
          2.   Angioneurotic edema due to dander or
               dandruff	   242.1
          3.   Angioneurotic edema due to dust	   242.3
          4.   Angioneurotic edema due to food	   242.4
          5.   Angioneurotic edema due to cosmetics	   242.5
          6.   Angioneurotic edema due to drugs	   242.6
          7.   Angioneurotic edema with multiple
               allergens	   242.8
          8.   Angioneurotic edema, other and unspeci-
               fied	   242.9
          9.   Urticaria due to pollen	   243.0
         10.   Urticaria due to dander or dandruff	   243.1
         11.   Urticaria due to feathers	   243.2
         12.   Urticaria due to dust	   243.3
         13.   Urticaria due to food	   243.4
         14.   Urticaria due to cosmetics	   243.5
         15.   Urticaria due to drugs	   243.6
         16.   Urticaria with multiple allergens	   243.8
                                     109

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Disease Classified                                         I.C.D.A.      T Codes
         17.   Urticaria, other and unspecified	    243.9
         18.   Other allergic disorders due to pollen....    245.0
         19.   Other allergic disorders due to dander
               or dandruff	    245.1
         20.   Other allergic disorders due to feathers..    245.2
         21.   Other allergic disorders due to dust	    245.3
         22.   Other allergic disorders due to food	    245.4
         23.   Other allergic disorders due to cosmetics.    245.5
         24.   Other allergic disorders due to drugs	    245.6
         25.   Other allergic disorders with multiple
               allergens	,	    245.8
         26.   Other allergic disorders due to other
               and unspecified causes	    245.9
     C.   Other skin diseases
          1.   Eczema	    701.0
          2.   Other dermatitis due to plants	    703.0
          3.   Other dermatitis due to oils and greases..    703.1
          4.   Other dermatitis due to solvents	„.    703.2
          5.   Other dermatitis due to drugs in contact
               with skin	    703.3
          6.   Other dermatitis due to other chemicals
               in contact with skin	    703.4
          7.   Other dermatitis due to radiation	    703.5
          8.   Other dermatitis due to cosmetics	    703.6
          9.   Other dermatitis due to dyes	    703.7
         10.   Other dermatitis due to other specified
               agents in contact with skin	    703.8
         11.   Other dermatitis due to unspecified agent
               in contact with skin	    703.9
     D.   Specific diseases - allergies
          1.   Angioneurotic edema due to dust	    242.3
          2.   Urticaria due to dust	    243.3
          3.   Allergic eczema or dermatitis due to
               internal agent - dust	    244.3
          4.   Other allergic disorders due to dust	    245.3
          5.   Other allergic disorders due to other
               and unspecified causes	    245.9
                                     110

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Disease Classified                                        I.C.D.A.     T Codes

          6.   Other dermatitis due to other specified
               agents in contact with skin	   703.8


IV.   Diseases of the Circulatory System
     A.    Heart
          1.   Hypertensive cardiovascular disease

               a.   Hypertensive heart disease with
                   arteriolar  nephrosclerosis	   442.0
               b.   Other hypertensive heart  disease	   443.0

          2.   Arteriosclerotic heart disease,  including
               coronary  heart  disease

               a.   Arteriosclerotic heart  disease  so  de-
                   scribed, with or without  angina
                   pectoris	   420.0

               b.   Myocardial  infarction	   420.1
               c.   Healed coronary occlusion	   420.2

               d.   Coronary insufficiency	   420.3
               e.   Angina pectoris without mention of
                   coronary disease	   420.4

               f.   Aneurysm of coronary artery and heart.   420.5

               g.   Arteriosclerotic heart  disease  with
                   atrial fibrillation	   420.6
               h.   Arteriosclerotic heart  disease  with
                   angina pectoris	   420.9
               i.   Arteriosclerotic heart  disease  with
                   myocardial  infarction  and angina
                   pectoris	   421.5

          3.   Hypertensive and arteriesclerotic heart
               disease
               a.   Hypertensive heart disease and  arterio-
                   sclerotic heart  disease	   436.0

               b.   Hypertensive and arteriosclerotic
                   heart disease with atrial fibrilla-
                   tion 	   436.6
               c.   Hypertensive and arteriosclerotic
                   heart disease with angina pectoris....   436.9

          4.   Chronic rheumatic heart disease

               a.   Other endocarditis, specified as
                   rheumatic (chronic), inactive	   414.0

                                     111

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Disease Classified                                        I.C.D.A.      I Codes
               b.  Other myocarditis, specified as
                   rheumatic  (chronic) , inactive	    415.0
               c.  Rheumatic heart disease with multi-
                   ple valve involvement	    417.0
          5.   Other heart diseases
               a.  Congestive heart failure	    434.1
               b.  Left ventricular failure	    434.2
               c.  Other disease of heart	    434.3
               d.  Cardiac enlargement or hypertrophy...    434.5
               e.  Cardiac or ventricular dilatation....    434.6
               f.  Cor pulmonale (right ventricular
                   failure)	    434.7
               g.  Past congestive heart failure  (com-
                   pensated at time of service)	    434.8
               h.  Other unspecified diseases of heart..    434.9
               i.  Precardial pain	    782.0
               j.  Palpitation	    782.1
               k.  Tachycardia	    782.2
          6.   Specific heart diseases to be examined
               a.  Myo car dial infarction	    420.1
               b.  Coronary insufficiency	    420.3
               c.  Angina pectoris without mention of
                   coronary disease	    420.4
               d.  Arteriesclerotic heart disease with
                   angina pectoris	    420.9
               e.  Arteriosclerotic heart disease with
                   myocardial infarction and angina
                   pectoris	    421.5
               f.  Cor pulmonale	    434.7
     B.   Circulatory system
          1.   Diseases of arteries, veins, and other
               diseases of the circulatory system
               a.  Pulmonary embolism and infarction....    465.0
               b.  Pallor and cyanosis (not of newborn).    782.3
               c.  Edema and dropsy (not of newborn)....    782.6
                                      112

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Disease Classified                                        I.C.D.A.     T Codes

          2.   Hypertensive disease
               a.  Hypertension with arteriolar
                   nephrosclerosis	    446.0

               b.  Other hypertensive diseases	    447.0

               c.  Hypertensive heart disease with
                   atrial fibrillation	    447.6

          3.   Acute brain syndromes associated with
               circulatory disturbance
               a.  Acute brain syndrome associated with
                   circulatory disturbance	    303.0

               b.  Acute brain syndrome associated with
                   metabolic disturbance	    305.0

               c.  Cerebral arteriosclerosis.	    334.0
               d.  Cerebral encephalopathy due to
                   arteriosclerosis or hypertension	    334.1

          4.   Chronic brain syndromes associated with
               a circulatory disturbance
               a.  Chronic brain syndrome cerebral
                   arteriosclerosis	    313.0
               b.  Chronic brain syndrome, senile brain
                   disease....	    315.0
               c.  Chronic brain syndrome, presenile
                   brain disease	    315.1

          5.   Arteriosclerosis
               a.  Arteriosclerosis not further
                   specified	    450.0

               b.  Other	    450.9

          6.   Non-specific circulatory complaints

               a.  Precardial pain	    782.0        351

               b.  Dyspnea, orthopnea	    783.2        368


V.   Diseases of the Digestive System
     A.   Upper gastrointestinal tract - neoplasms

          1.   Benign neoplasms, upper gastrointestinal
               tract
               a.  Benign neoplasms of the esophagus....    211.0
               b.  Benign neoplasms of the stomach	    211.1

                                     113

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Disease Classified                                        I.C.D.A.     I Codes
               c.  Benign neoplasm of small intestine,
                   including duodenum	   211.2
               d.  Benign neoplasms of liver and bilary
                   passages	   211.5
               e.  Benign neoplasm of pancreas	   211.6
               f.  Benign neoplasm of peritoneum	   211.7
          2.   Malignant neoplasms
               a.  Malignant neoplasm of esophagus	   150.0
               b.  Malignant neoplasm of stomach.........   151.0
               c.  Malignant neoplasm of duodenum	   152.0
               d.  Malignant neoplasm of jejunum	   152.1
               e.  Malignant neoplasm of ileum	   152.2
               f.  Malignant neoplasm, part unspecified..   152.9
               g.  Malignant neoplasm, liver stated to
                   be primary site..	   155.0
               h.  Malignant neoplasm gall bladder,
                   extrahepatic gall ducts including
                   ampulla of vater	   155.1
               i.  Malignant neoplasm of liver, secon-
                   dary or unspecified	   156.0
               j.  Malignant neoplasm of pancreas	   157.0
               k.  Malignant neoplasm of peritoneum	   158.0
     B.   Ulcer of the upper gastrointestinal tract
          1.   Ulcer of stomach, without perforation
               and without hemorrhage	   540.0
          2.   Ulcer of stomach, without perforation
               but with hemorrhage	   540.1
          3.   Ulcer of stomach, with perforation but
               without hemorrhage	   540.2
          4.   Ulcer of stomach, with perforation and
               with hemorrhage	   540.3
          5.   Peptic ulcer without mention of stomach
               or duodenum	   540.8
          6.   Ulcer of duodenum, without perforation
               and without hemorrhage	   541.0
          7.   Ulcer of duodenum, without perforation
               but with hemorrhage	   541.1
                                     114

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 Disease Classified                                        I.C.D.A.      T  Codes

           8.    Ulcer  of duodenum, with perforation
                but without hemorrhage	    541.2

           9.    Ulcer  of duodenum, with perforation and
                with hemorrhage	    541.3

         10.    Gastrojejunal ulcer, without perforation
                and without hemorrhage	    542.0
         11.    Gastrojejunal ulcer, without perforation
                but with hemorrhage	    542.1
         12.    Gastrojejunal ulcer, with perforation
                but without hemorrhage.	    542.2
         13.    Gastrojejunal ulcer, with perforation and
               with hemorrhage	    542.3

     C.   Lower gastrointestinal tract - neoplasms
          1.    Benign neoplasms, lower gastrointestinal
                tract

                a.  Benign neoplasm of large intestine,
                   excluding rectum	    211.3
                b.  Benign neoplasms of rectum	    211.4

          2.    Malignant neoplasms, lower gastrointes-
                tinal  tract
                a.  Malignant neoplasm of cecum, appendix,
                   and ascending colon	    153.0
                b.  Malignant neoplasm of transverse
                   colon, including hepatic and splenic
                   flexures	    153.1
                c.  Malignant neoplasm of descending
                   colon	    153.2
                d.  Malignant neoplasm, Sigmoid	    153.3
                e.  Malignant neoplasm, large intestine,
                   part unspecified	    153.8
                f.  Malignant neoplasm, intestinal tract,
                   part unspecified	    153.9
                g.  Malignant neoplasm of rectum	    154.0


VI.  Diseases of the Eye
     A.   Inflammatory diseases of the eye
          1.    Infective conjunctivitis	    370.0

          2.    Conjunctivitis of unknown etiology, with
                antibiotic given	    370.1
                                     115

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Disease Classified                                        I.C.D.A.     T  Codes
          3.   Conjunctivitis of unknown etiology, with
               antibiotic not given	   370.2
          4.   Allergic conjunctivitis	   370.4
          5.   Infectious blepharoconjunctivitis	   370.5
          6.   Unspecified blepharoconjunctivitis, with
               antibiotic given	   370.6
          7.   Allergic blepharoconjunctivitis	   370.8
     B.   Non-specific eye complaints
          1.   Diseases of the eyeball, ocular muscles,
               and orbit	   388.2
               a.  Pain around eye	                 221
               b.  Pain of eye....	                 231
          2.   Discharge of eye	«,	                 224
          3.   Excessive tearing, watery	                 234
          4.   Blepharitis	   371.0
               a.  Inflammation of eyelid	                 255
          5.   Other pruritic conditions	   708.9
               a.  Itching of eye	                 237
          6.   Feeling of foreign body in eye	                 258

VII. Diseases of the Genitourinary System
     A.   Benign neoplasms
          1.   Benign neoplasm of ovary, other and
               unspecified	   216.9
          2.   Benign neoplasm of kidney and ureter	   219.0
          3.   Benign neoplasm of bladder	   219.1
          4.   Benign neoplasm, other and unspecified
               urinary organs	   219.9
     B.   Malignant neoplasms
          1.   Malignant neoplasm of ovary	   175.0
          2.   Malignant neoplasm of kidney and ureter...   180.0
          3.   Malignant neoplasm of bladder	   181.0
          4.   Malignant neoplasm, other urinary organs..   181.9
                                     116

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Disease Classified                                        I.C.D.A.     T Codes
     C.   Nephritis and nephrosis
          1.   Acute nephritis	    590.0
          2.   Nephritis with edema, including
               nephrosis	    591.0
          3.   Functional edema, idiopathic	    591.1
          4.   Chronic nephritis	    592.0
          5.   Nephritis not specified as acute or
               chronic	    593.0
          6.   Other renal sclerosis	    594.0
VIII. Other Diseases
     A.   Symptoms and diagnoses referrable to nervous
          system and special senses
          1.   Neurologic symptom - tic, tremor, other
               abnormal voluntary movements, distur-
               bances	    780.4
               a.  Tic	                 165
               b.  Tremor	                 166
               c.  Other abnormal involuntary move-
                   ments	                 167
               d.  Twitching of muscles	                 709
               e.  Muscle spasm	                 710
               f.  Nocturnal leg cramp	                 719
               g.  Leg cramps	                 720
          2.   Neurologic symptom - other abnormal
               voluntary movements, disturbances of
               coordination	    780.5
               a.  Other abnormal voluntary movements...                 168
               b.  Disturbance of coordination	                 170
               c.  Other disturbances in writing	                 198
          3.   Tetany	    788.5        169
          4.   Neurologic symptom - vertigo	    780.6
          5.   Neurologic symptom - disturbance of
               sleep.....«..«..••«•••«••••••••••••••••••    780.7
               a.  Hypersomnia	                 025
               b.  Insomnia..	                 026
               c.  Somnambulism	                 027
                                     117

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Disease Classified                                        I.C.D.A.     T  Codes
     d.  Nightmares
     e.  Sleepiness
6.   Neurologic symptom - disturbance of
               e.  Sleepiness ............. . ..............                 °68
               memory ............. .... ...................   780.0         175
               a.  Amnesia ...............................                 176
          7.   Neurologic symptom - meningismus ....... ...   780.9
          8.   Disturbance of vision, except defective
               sight .....................................   781.0
               a.  Spots in field of vision ..............                 248
          9.   Occulomotor disturbances ..................   781.1
               a.  Diplopia .......... . ............. . .....                 246
               b.  Drooping of eyelid ....................                 247
         10.   Photophobia ....... ......... ...............   781.2         241
         11.   Disturbance of hearing, except deafness...   781.3
               a.  Tinnitus ..............................                 268
               b.  Other extraneous noises in ear; and
                   sensitivity to noises .................                 269
         12.   Disturbance of cranial nerves, except
               optic, occulomotor, and auditory ....... ...   781.4
         13.   Other disturbances of sensation ...........   781.7         190
               a.  Lightheadedness .......................                 020
               b.  Loss of sense of smell ...... . .........                 185
               c.  Loss of taste ..... ....... .............                 186
               d.  Anesthesia ............................                 187
               e.  Hyperesthesia .........................                 188
               f.  Paresthesia ...........................                 189
               g.  Frigidity .............................                 626
               h.  Burning skin... .......................                 661
     B.   Emotional, mental, and psychotic disorders
          1.   Non-specific psychosomatic symptoms
               a.  Nervousness ...........................   790.0         100
               b.  Debility and undue fatigue ....... «....   790.1
                   11.  Cachexia .........................                 028
                   22.  Fatigue ..........................                 030
                   33 .  Weakness .........................                 035
                                     118

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Disease Classified                                        I.C.D.A.     T Codes
               c.  Lethargy	                029
               d.  Depression of functional activity	   790.2
               e.  Illness which prevents  sleep,
                   except insomnia	   790.4
               f.   Headache....	   791.0        151
               g.   Observation,  mental	   793.0
               h.   Malingering	   795.3        115
               i.   Multiple chronic symptoms	                 059
               j.   Multiple complaints	                 060
               k.  Vague feeling of not feeling well	                 066
               1.  Euphoria	                 105
              m.  Loss of affect.	                 109
              n.  Slow learning in school	                 120
              o.  Other psychiatric symptoms.	                 149
         2.   Non-specific psychosomatic diagnoses
              and/or symptoms of nervous system
               a.   Simple schizophrenic reaction,
                  negativism	    320.0        117
               b.   Paranoid state, delusions	    321.1        107
               c.   Psychoneurotic, anxiety  reaction	   324.0
               d.   Dissociative  reaction	   324.1
               e.   Conversion reaction	   324.2
               f.   Phobic reaction	   324.3        077
               g.   Obsessive  compulsive reaction	   324.4
               h.   Depressive  reaction	   324.5        076
               i.   Tranquilizers or  sedatives pre-
                   scribed ;  reason not stated	   324.7
               j.   Hypochondriasis	   324.8
               k.  Psychoneurotic disorders, other and
                   unspecified	   324.9
               1.  Inadequate personality	   325.0
               m.  Schizoid personality	   325.1
               n.  Cyclothymic personality	   325.2
               o.  Paranoid personality.	   325.3
               p.  Other personality pattern disturbance,
                   abnormal sexual behavior	   325.4        125
                                     119

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Disease Classified                                         I.C.D.A.      T Codes
               q.  Emotionally unstable personality	     325.5
               r.  Passive-aggressive personality	     325.6         089
               s.  Compulsive personality	     325.7         079
               t.  Other and unspecified personality
                   disturbance	     325.9
                   11.  Feelings of excess demands
                        on self	                  078
                   22.  Mental Immaturity	                  098
                   33.  Bizarre or disorganized
                        behavior	                  108
                   44.  Failure to adjust to school	                  119
               u.  Antisocial reaction	     326.0         087
               v.  Dissocial reaction	     326.1         095
               w.  Alcohol addiction	     326.3
               x.  Special symptom reactions	     327.0
               y.  Hyperactive behavior	     327.1
               z.  Transcient anxiety provoking situa-
                   tion; sedative or tranquilizer
                   prescribed	     327.8
              aa.  Gross stress reaction..	     328.0
              bb.  Adult situation reaction	     328.1
              cc.  Other and unspecified.	     328.9
                   11.  Hostile behavior	                  085
                   22.  Asocial behavior	                  086
                   33.  Failure to conform with be-
                        havior standards of family	                  088
                   44.  Lack of mature behavior	                  118
          3.   Adjustment reactions
               a.  Adjustment to infancy	     328.2
                        Hyperactive behavior	                  080
                        Tantrums	                  090
                        Cruelty	                  096
                        Destructiveness	                  097
               b.  Adjustment reaction of childhood	     328.3
                        Hyperactive behavior	                  080
                        Tantrums	                  090
                                     120

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Disease Classified                                        I.C.D.A.     T Codes
                      Cruelty	                 096
                      Destructiveness	                 09 7
                      Breathholding	                 116
               c.   Adjustment reaction of adolescence...    328.4
                      Hyperactive behavior	                 080
                      Tantrums	                 090
                      Cruelty	                 096
                      Destructiveness	                 097
               d.   Adjustment to late life	    328.5
                      Hyperactive behavior	                 080
                      Marital problems	                 099
               e.   Hyperactive behavior	                 080
               f.   Tantrums	                 090
               g.   Cruelty	                 096
               h.   Destructiveness	                 097
               i.   Marital problems	                 099
               j.   Breathholding	                 116
          4.    Non-specific psychosomatic diagnoses
               of  other systems
               a.   Skin reaction	    323.0
               b.   Musculoskeletal reaction	    323.1
               c.   Respiratory reaction	    323.2
               d.   Cardiovascular reaction	    323.3
               e.   Hemic and lymphatic reaction	    323.4
               f.   Gastrointestinal reaction	    323.5
               g.   Endocrine reaction	    323.7
               h.   Nervous system reaction	    323.8
               i.   Reaction of organs of special sense..    323.9
          5.    Psychotic disorders
               a.   Involutional psychotic reaction......    318.0
               b.   Manic depressive, reaction manic
                   type	    319.0
               c.   Manic depressive, depressive type....    319.1
               d.   Manic depressive, other	    319.2
               e.   Psychotic depressive reaction	    319.3
                                     121

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Disease Classified                                        I.C.D.A.     T  Codes
               f.  Schizophrenic reaction, hebephrenic
                   type	   320.1
               g.  Schizophrenic reaction, catatonic
                   type	   320.2
               h.  Schizophrenic reaction, paranoid type.   320.3
               i.  Schizophrenic reaction, acute
                   undifferentiated type	   320.4
               j.  Schizophrenic reaction, chronic
                   undifferentiated type	   320.5
               k.  Schizophrenic reaction, schizo-
                   af fective	   320.6
               1.  Schizophrenic reaction, childhood	   320.7
               m.  Schizophrenic reaction, residual......   320,8
               n.  Schizophrenic reaction, other and
                   unspecified	   320.9
               o.  Paranoia	   321.0
               p.  Other psychotic reaction...	   322.0
     C.   Other specific diseases
          1.   Sarcoid of Boeck	   138.0
          2.   Porphyria (except due to drugs)	   289.4
          3.   Disaccharidase deficiency	   289.7
          4.   Hyperventilation syndrome	   324.6
          5.   Cirrhosis of liver without mention of
               alcoholism	   581.0
          6.   Cirrhosis of liver with alcoholism	   581.1
                                     122

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                                 APPENDIX B

       Table B-l.  PRETEST REGRESSION RESULTS OF STATISTICAL MODEL 10:
                             RESPIRATORY DISEASES - UNLAGGED
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people in household
Household income
Race - Negro
Race - other non-white
Physically fit
Somewhat physically fit
Drinking
Smoking index
Occupational exposure index
Air pollution
Temp, humidity index
Outpatient medical services
R2
a/
Coefficients—
153
-1.8736E 00
(1.9241E 00)
-6.7890E-05
(5.9527E-03)
1.1035E-01
(1.4408E-01)
2.8038E-01
(2.2013E-01)
2.4386E-02
(5.0846E-02)
-7.7191E-06
(1.0137E-05)
-2.4771E-01
(3.4051E-01)
4.6733E-01
(6.6923E-01)
-1.9884E-01
(2.4558E-01)
-4.8518E-01
(1.6731E-01)
4.8631E-04
(2.1145E-03)
4.5499E-04
(4.0694E-04)
7.7237E-03
(1.3866E-02)
2.7269E-01
(1.2159E-01)
7.0107E-01
(4.5198E-01)
0.1156
t Statistics

0.9738
0.0114
0.7659
1.2737
0.4796
0.7615
0.7275
0.6983
0.8097
0.2900
0.2300
1.1181
0.5570
2.2427
1.5511

Mean^-7


45.5294
(16.0538)
0.7386
(0.5823)
0.8039
(0.3983)
3.5033
(1.9639)
12178.1046
(7869.8121)
0.0523
(0.2233)
0.0131
(0. 1140)
0.1307
(0.3382)
0.5556
(0.4985)
13.5157
(38.2885)
118.9319
(198.2665)
4.3030
(5.9661)
60.2792
(32.0161)
52.7171
(8.5303)
13.8386
(11.2557)
—•  The standard error of  the regression coefficient  is  in parentheses.   E-01,
   E 01, E 00, etc., indicate that the decimal place of the number  is  to be
   shifted to the left by one place; shifted to  the  right by one place;  or
   not shifted at all, respectively.

—  The standard deviation about  the mean  is in parentheses; means are  untrans-
   formed.
                                     123

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      Table B-2.  PRETEST REGRESSION RESULTS OF STATISTICAL MODEL 10:
                      CIRCULATORY-RESPIRATORY DISEASES - UNLAGGED
Variab les
Sample size
Constant
Age
Sex
Marital status
No. of people in household
Household income
Race - Negro
Race - other non-white
Physically fit
Somewhat physically fit
Drinking
Smoking index
Occupational exposure index
Air pollution
Temp, humidity index
Outpatient medical services
R2
a/
Coefficients—
333
-5.9326E-01
(1.2102E 00)
9.6186E-04
(3.9557E-03)
2.3956E-01
(8.3891E-02)
2.2654E-01
(1.2799E-01)
3.5947E-02
(3.8202E-02)
-9.1927E-06
(6.5999E-06)
-2.1188E-01
(2.6783E-01)
-5.1321E-03
(3.3190E-01)
-3.1567E-02
(1.3458E-01)
3.4824E-02
(1.0458E-01)
-6.9087E-04
(1.0267E-03)
3.5109E-04
(2.1380E-04)
1.4589E-02
(9.6653E-03)
2.1064E-01
(7.4181E-02)
3.9523E-01
(2.9039E-01)
0.0864
t Statistics

0.4902
0.2432
2.8557
1.7713
0.9410
1.3929
0.7911
0.0155
0.2346
0.3330
0.6729
1.6421
1.5095
2.8396
1.3610

Mean^7


54.4924
(16.0471)
0.6666
(0.5859)
0.8018
(0.3992)
2.9399
(1.7552)
10704.9549
(7900.4679)
0.0300
(0.1709)
0.0210
(0.1437)
0.1772
(0.3824)
0.4955
(0.5007)
12.3330
(46.1372)
136.7889
(224.4347)
3.1037
(5.2676)
59.8635
(31.8933)
54.1314
(8.2007)
13.6919
(11.4310)
b/
The standard error of the regression coefficient is in parentheses.  E-01,
E 01, E 00, etc., indicate that the decimal place of the number is to be
shifted to the left by one place; shifted to the right by one place; or
not shifted at all, respectively.

The standard deviation about the mean is in parentheses; means are untrans-
formed.
                                  124

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      Table B-3.  PRETEST REGRESSION RESULTS OF STATISTICAL MODEL  11:
                         RESPIRATORY DISEASES - LAGGED ONE DAY
Variables
Sample size
Constant
Age
Sex
Marital status
No. of people in household
Household income
Race - non-white
Drinking
Smoking index
Occupational exposure index
Air pollution
Temp, humidity index
Per capita costs
R2
Coefficients^'
166
-2.2162E 00
(2.6239E 00)
-1.1754E-02
(7.2070E-03)
-2.2007E-04
(1.9796E-03)
7.2529E-04
(2.8123E-03)
-1.0366E-01
(7.4044E-02)
-2.8430E-06
(1.4136E-05)
9.3073E-04
(4.0313E-03)
3.1881E-04
(2.9840E-03)
-2.1284E-04
(3.9639E-04)
2.0080E-02
(1.7792E-02)
2.0219E-01
(1.4319E-01)
5.1959E-01
(6.3601E-01)
0.0603
t Statistics

0.8466
1.6309
0.1112
0.2579
1.4000
0.2011
0.2309
0.1068
0.5370
1.1286
1.4121
0.8170

Meai£'


44.9036
(16.1028)
68.0723
(52.8453)
80.1205
(40.0301)
3.3373
(1.6933)
11974.3976
(7154.9744)
6.6265
(24.9497)
11.9235
(35.8459)
156.8643
(260.8312)
3.8560
(5.9076)
52.8506
(7.8279)
62.1369
(3415265)
1.7724
(3.3421)
—•  The standard error of  the regression coefficient is in parentheses.  E-01,
   E 01  E 00, etc., indicate  that the decimal place of the number  is  to be
   shifted to the left by one  place;  shifted to  the right by one place; or
   not shifted at all, respectively.

—^ The standard deviation about the mean  is in parentheses; means are  untrans-
   formed.
                                      125

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BIBLIOGRAPHIC DATA
SHEET
1. Report No.
  EPA 600/5-74-017
S.N^ecipient's Accession No.
.  Title and Subtitle

  Outpatient Medical Costs Related To Air  Pollution in the
  Portland, Oregon Area
                                               "3. Report Date

                                                  July 1974
                                                6.
  Author(s)
  John  A.  Jaksch and Herbert H. Stoevener
                                                8. Performing Organization Rept.
                                                  No.
  Performing Organization Name and Address

  Department of Agricultural  Economics
  Oregon  State University
  Con/all is, Oregon
                                                10. Project/Task/Work Unit No.
                                                    1H1094-07AAC-02
                                                11. Contract/Grant No.

                                                Contract No. 68-01-0423
 2. Sponsoring Organization Name and Address
   Washington Environmental  Research Center
   Office  of Research and Development
   Environmental Protection  Agency
   Washington. D.C.  20460          	
                                                13. Type of Report & Period
                                                   Covered
                                                14.
15. Supplementary Notes
16. Abstracts
[his study  has  attempted to  quantify in monetary  terms the effects of air pollution on
the consumption of outpatient  medical services.   The hypotheses were  that air pollution
can aggravate a state of health  resulting in  increased consumption of outpatient medical
services and  in the number of  contacts with the medical system for certain respiratory,
cardiovascular, and other diseases aggravated  by  air pollution.  The  study period was
1969-1970,  and  centered in the Portland, Oregon area.   Statistical models were formulatec
explaining  individual outpatient consumption of medical services.  Measures of suspended
particulate air pollution and  meteorological conditions, as well as socioeconomic-
demographic variables thought  to influence the consumption of medical  services, were
included in the models as explanatory variables.   The statistical results indicated that
the procedures  used in the study hold promise  for quantifying the medical costs of air
pollution.  The results did  show air pollution to have an effect on the consumption of
outpatient medical  services  used to treat certain respiratory diseases.	
17. Key Words and Document Analysis.  17a. Descriptors

    Air Pollution
    Economic Analysis
    Benefit/Cost Analysis, Air Pollution
    Economic Effects, Air Pollution
    Economic Effects, Health
17b. Identifiers/Open-Ended Terms

    Air Pollution Economics
    Economic  Impact
    Air Pollution Effects  (Health)
 17c. COSATI Field/Group
 18. Availability Statement

      Unlimited
                                     19. Security Class "(This
                                        Report)
                                          UNCLASSIFIED
                                     20. Security Class (This
                                        Page
                                     	  UNCLASSIFIED
           21- No. of Pages
                 132
           22. Price
FORM NTIS-35 (KEY. 3-72)
              THIS FORM MAY BE REPRODUCED
                                                                               USCOMM-DC 14952-P72

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