I just received and have scanned through Lisa Iezzoni’s fourth book (as editor and major contributor) entitled
Risk Adjustment for Measuring Health Care Outcomes (Fourth Edition), Lisa I Iezzoni (ed) (2013)
Even though Lisa is a physician, not an economist or statistician, this book provides an excellent overview of risk adjustment (population-based), and severity or case mix adjustment (episode or event based), and includes discussion of available datasets, model comparisons, propensity score matching, lists of information potentially useful, clinical classification, variables clinical, social and statistical issues. Contributions on statistical methodology by Michael Swartz and Arlene Ash, as well as separate chapters on mental health, long term care, managing healthcare organizations, and provider profiling are excellent. Its main weakness is in not capturing international developments at all, not discussing the commercial market for risk adjustment models, and not covering most nonlinear and econometric (as distinct from statistical) issues well. Still, it should be required reading for anyone planning to do work in this area.
I have put it on my list of all time favorite books, but acknowledge that only a limited subset of people will be interested in it.