Innovation Diffusion under Budget Constraints: Microeconometric Evidence on Heart Attack in France
AbstractWe study the diffusion of innovative procedures for heart attack treatment, focusing on its impact on the distributions of the cost and length of hospital stays. We perform microsimulations on a sample of 5,681 stays in French public hospitals to evaluate the impacts of adoption of new techniques by hospitals, dissemination of new techniques within hospitals, and changes in patients' characteristics. Between 1994 and 1997, French public hospitals faced two main causes of rise in costs: diffusion of innovative procedures and a worsening of patients' state. However, they were financed by a global budget, and their budgets increased very slowly. We show that they deal with their financial constraints by reducing greatly the length of stays for patients at the bottom of the distribution. This appears to have enabled hospitals to finance the diffusion of angioplasty. Obviously, such a strategy cannot be sustained in the long run without jeopardizing the quality of care.
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Bibliographic InfoArticle provided by ENSAE in its journal Annals of Economics and Statistics.
Volume (Year): (2005)
Issue (Month): 79-80 ()
Other versions of this item:
- Brigitte Dormont & Carine Milcent, 2010. "Innovation Diffusion under Budget Constraints: Microeconometric Evidence on Heart Attack in France," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 697-726 National Bureau of Economic Research, Inc.
- Brigitte Dormont & Carine Milcent, 2004. "Innovation diffusion under budget constraints - Microeconometric evidence on heart attack in France -," DELTA Working Papers 2004-11, DELTA (Ecole normale supérieure).
- I12 - Health, Education, and Welfare - - Health - - - Health Production
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
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- Laurent Gobillon & Carine Milcent, 2008. "Regional disparities in mortality by heart attack: evidence from France," Working Papers halshs-00586837, HAL.
- Laurent Gobillon & Carine Milcent, 2010.
"Spatial Disparities in Hospital Performances,"
2010-19, Centre de Recherche en Economie et Statistique.
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- Gobillon, Laurent & Milcent, Carine, 2012. "Spatial Disparities in Hospital Performance," IZA Discussion Papers 6936, Institute for the Study of Labor (IZA).
- Gobillon, Laurent & Milcent, Carine, 2010. "Spatial Disparities in Hospital Performances," CEPR Discussion Papers 7826, C.E.P.R. Discussion Papers.
- Brigitte Dormont & Michel Grignon & Hélène Huber, 2006.
"Health expenditure growth: reassessing the threat of ageing,"
John Wiley & Sons, Ltd., vol. 15(9), pages 947-963.
- Brigitte Dormont & Michel Grignon & Hélène Huber, 2006. "Health expenditure growth : reassessing the threat of ageing," Post-Print halshs-00181605, HAL.
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