The impact of comparative effectiveness research on health and health care spending.

Abstract:

:Comparative effectiveness research (CER) is thought to identify what works and does not work in health care. We interpret CER as infusing evidence on product quality into markets, shifting the relative demand for products in CER studies. We analyze how shifts in demand affect health and health care spending and demonstrate that CER may raise or lower overall health when treatments have heterogeneous effects, but payers respond with product-specific coverage policies. Among patients with schizophrenia, we calibrate that subsidy policies based on the clinical trial CATIE may have reduced overall health by inducing some patients to switch away from schizophrenia treatments that were effective for them towards winners of the CER.

journal_name

J Health Econ

authors

Basu A,Jena AB,Philipson TJ

doi

10.1016/j.jhealeco.2011.05.012

subject

Has Abstract

pub_date

2011-07-01 00:00:00

pages

695-706

issue

4

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(11)00065-8

journal_volume

30

pub_type

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