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This paper uses two-stage least squares (2SLS) to model choice of program and health outcomes in a health care management setting. The study includes an analysis of the probability of a low birth weight (LBW;

Keywords: health care management, Medicaid, birth weight, prenatal care, selection bias.

1. INTRODUCTION

According to the National Center for Health Statistics, low birth weight births in 2000 accounted for 13% of births to African-American women but only 6.5% of white births (Martin et al., 2002). Comprehensive prenatal care programs have been incorporated into many states' Medicaid programs to address the issue of poor birth outcomes, especially ...

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