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Fixed budgets as a cost containment measure for pharmaceuticals

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  • David Granlund

    ()

  • Niklas Rudholm
  • Magnus Wikström

Abstract

In the county of Västerbotten, Sweden, there are two health centres which (contrary to all other health centres in the region) have a strict responsibility over their pharmaceutical budget. The purpose of this paper is to examine if the prices and quantities of pharmaceuticals prescribed by physicians working at these health centres differ significantly from those prescribed by physicians at health centres with open-ended budgets. Estimation results using matching methods, which allows us to compare similar patients at the different health centres, show that the introduction of fixed pharmaceutical budgets did not affect physicians' prescription behaviour.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10198-005-0328-8
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Bibliographic Info

Article provided by Springer in its journal The European Journal of Health Economics.

Volume (Year): 7 (2006)
Issue (Month): 1 (March)
Pages: 37-45

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Handle: RePEc:spr:eujhec:v:7:y:2006:i:1:p:37-45

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Web page: http://link.springer.de/link/service/journals/10198/index.htm

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Related research

Keywords: Fixed budgets; Pharmaceuticals; Cost containment; Propensity score matching;

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References

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  1. Lundin, Douglas, 2000. "Moral hazard in physician prescription behavior," Journal of Health Economics, Elsevier, vol. 19(5), pages 639-662, September.
  2. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
  3. J. Kornai & E. Maskin & G. Roland., 2004. "Understanding the Soft Budget Constraint," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 11.
  4. Heckman, James J & Ichimura, Hidehiko & Todd, Petra E, 1997. "Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme," Review of Economic Studies, Wiley Blackwell, vol. 64(4), pages 605-54, October.
  5. Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
  6. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
  7. Arulampalam, W. & Robin A. Naylor & Jeremy P. Smith, 2002. "University of Warwick," Royal Economic Society Annual Conference 2002 9, Royal Economic Society.
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Cited by:
  1. Kim Olsen & Dorte Gyrd-Hansen & Andreas Boegh & Sofie Hansen, 2009. "GPs as citizens’ agents: prescription behavior and altruism," The European Journal of Health Economics, Springer, vol. 10(4), pages 399-407, October.
  2. Granlund, David, 2008. "Does physicians' compensation affect the probability of their vetoing generic substitution?," UmeÃ¥ Economic Studies 729, Umeå University, Department of Economics, revised 26 Mar 2008.
  3. Granlund, David, 2008. "Does Physicians' Compensation Affect the Probability of their Vetoing Generic Substitution?," HUI Working Papers 14, HUI Research.

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