Financial incentives and physician prescription behavior: Evidence from dispensing regulations.

Abstract:

:In many health care markets, physicians can respond to changes in reimbursement schemes by changing the volume (volume response) and the composition of services provided (substitution response). We examine the relative importance of these two behavioral responses in the context of physician drug dispensing in Switzerland. We find that dispensing increases drug costs by 52% for general practitioners and 56% for specialists. This increase is mainly due to a volume increase. The substitution response is negative on average, but not significantly different from zero for large parts of the distribution. In addition, our results reveal substantial effect heterogeneity.

journal_name

Health Econ

journal_title

Health economics

authors

Burkhard D,Schmid CPR,Wüthrich K

doi

10.1002/hec.3893

subject

Has Abstract

pub_date

2019-09-01 00:00:00

pages

1114-1129

issue

9

eissn

1057-9230

issn

1099-1050

journal_volume

28

pub_type

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