Data in health research are frequently structured hierarchically. For examp
le, data may consist of patients nested within physicians, who in turn may
be nested in hospitals or geographic regions. Fitting regression models tha
t ignore the hierarchical structure of the data can lead to false inference
s being drawn from the data. Implementing a statistical analysis that takes
into account the hierarchical structure of the data requires special metho
dologies.
In this paper, we introduce the concept of hierarchically structured data,
and present an introduction to hierarchical regression models. We then comp
are the performance of a traditional regression model with that of a hierar
chical regression model on a dataset relating test utilization at the annua
l health exam with patient and physician characteristics. In comparing the
resultant models, we see that false inferences can be drawn by ignoring the
structure of the data.