The Effects of Enriched Prenatal Care Services on Medicaid Birth Outcomes in New Jersey

This paper uses a health production function framework to evaluate the race-specific effects of participation in New Jersey's HealthStart program on birthweight and newborn hospitalization costs in 1989 and 1990. HealthStart provides enriched prenatal and health support services to pregnant women on Medicaid. The program also attempts, through outreach, to attract women into care earlier. For blacks, the results indicate increased birthweights, lower newborn hospitalization costs and reduced rates of low birthweight and very low birthweight for those participating in HealthStart. There is no evidence, however, that the HealthStart program was associated with improved birth outcomes or lower costs for whites.