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How did Dentists Respond to the Introduction of Global Budgets in Taiwan? An Evaluation Using Individual Panel Data

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  • Miaw-Chwen Lee
  • Andrew M. Jones

Abstract

In response to the introduction of global budgets, dentists might alter their supply behaviour, changing the number of visits, the amount of expenditure, and the type of services provided. We develop two-way fixed effects models to estimate these effects using a panel data constructed from outpatient dental care expenditures claims from the Taiwanese National Health Insurance system. The availability of a long panel allows us to estimate a "policy effect" for each dentist in the panel. The overall effect of global budgets is to constrain costs but there is evidence of a change in the mix of services. Male and younger dentists have higher policy effects than female and older dentists. Global budgets favour dentists in deprived areas and there is some evidence of increases in the expenditure per visit and the volume of composite resin fillings.

Suggested Citation

  • Miaw-Chwen Lee & Andrew M. Jones, 2004. "How did Dentists Respond to the Introduction of Global Budgets in Taiwan? An Evaluation Using Individual Panel Data," International Journal of Health Economics and Management, Springer, vol. 4(4), pages 307-326, December.
    • Handle: RePEc:kap:ijhcfe:v:4:y:2004:i:4:p:307-326
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    Cited by:

    1. Kreng, Victor B. & Yang, Chi-Tien, 2011. "The equality of resource allocation in health care under the National Health Insurance System in Taiwan," Health Policy, Elsevier, vol. 100(2), pages 203-210.
    2. Jones, A.M, 2010. "Models For Health Care," Health, Econometrics and Data Group (HEDG) Working Papers 10/01, HEDG, c/o Department of Economics, University of York.
    3. Lin, Lee-Kai, 2022. "Effects of a global budget payment scheme on medical specialty workforces," Social Science & Medicine, Elsevier, vol. 309(C).
    4. Reed W. Robert & Webb Rachel, 2010. "The PCSE Estimator is Good -- Just Not As Good As You Think," Journal of Time Series Econometrics, De Gruyter, vol. 2(1), pages 1-26, September.
    5. Chang, Shun-Chiao & Lin, Chi-Feng & Yeh, Ta-Chun & Chang, Chun-Wei, 2019. "Determinants of the performance of traditional Chinese medicine clinics in Taiwan," Health Policy, Elsevier, vol. 123(4), pages 379-387.
    6. Hung-pin Lai & Meng-Chi Tang, 2018. "Hospital efficiency under global budgeting: evidence from Taiwan," Empirical Economics, Springer, vol. 55(3), pages 937-963, November.
    7. Lee, Miaw-Chwen & Jones, Andrew Michael, 2007. "Understanding differences in income-related health inequality between geographic regions in Taiwan using the SF-36," Health Policy, Elsevier, vol. 83(2-3), pages 186-195, October.
    8. Joseph Squillace, 2009. "The Economics of Medicaid Dental Care: How Global Budget Methods Affect Reimbursement," Poverty & Public Policy, John Wiley & Sons, vol. 1(2), pages 1-20, July.
    9. Chang, Ray-E. & Hsieh, Chi-Jeng & Myrtle, Robert C., 2011. "The effect of outpatient dialysis global budget cap on healthcare utilization by end-stage renal disease patients," Social Science & Medicine, Elsevier, vol. 73(1), pages 153-159, July.
    10. Pi-Fem Hsu, 2014. "Does a global budget superimposed on fee-for-service payments mitigate hospitals’ medical claims in Taiwan?," International Journal of Health Economics and Management, Springer, vol. 14(4), pages 369-384, December.
    11. Li Xiang & Zhengdong Zhong & Junnan Jiang, 2022. "The Response of Different-Levels Public Hospitals to Regional Global Budget with a Floating Payment System: Evidence from China," IJERPH, MDPI, vol. 19(23), pages 1-11, November.
    12. Kamhon Kan & Shu-Fen Li & Wei-Der Tsai, 2014. "The impact of global budgeting on treatment intensity and outcomes," International Journal of Health Economics and Management, Springer, vol. 14(4), pages 311-337, December.
    13. Bhavani Shankar & Jose Brambila‐Macias & Bruce Traill & Mario Mazzocchi & Sara Capacci, 2013. "An Evaluation Of The Uk Food Standards Agency'S Salt Campaign," Health Economics, John Wiley & Sons, Ltd., vol. 22(2), pages 243-250, February.
    14. Li Chang & Chi-Ping Hou, 2011. "Does a National Health Insurance System Enhance Quality of Care and Contain Cost?-An Empirical Investigation of the National Health Insurance System in Taiwan," Review of Economics & Finance, Better Advances Press, Canada, vol. 1, pages 32-42, November.

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