Recent causal inference literature has introduced causal effect decompositions to quantify sources of observed inequalities or disparities in outcomes, but these approaches are typically limited to pairwise comparisons. In healthcare delivery settings, both the exposure of interest-hospital or healthcare unit-and sociodemographic group membership may be polytomous, making pairwise contrasts inadequate. We therefore take the observed variance in care delivery outcomes as the quantity of interest and develop a new causal variance decomposition framework for this setting. The proposed framework attributes the observed variation to eight components, including novel terms characterizing modification of hospital effects by sociodemographic group membership, hospital access or selection, and the correlation between these two sources of heterogeneity. We discuss the causal interpretation of these components, propose both parametric and nonparametric model-based estimators, and study their performance through simulation. Finally, we illustrate the method using data from the SEER program in an application to cervical cancer care delivery.
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