The Effect of Budgets on Doctor Behaviour: Evidence From A Natural Experiment
AbstractIn many health care systems primary care physicians act as 'gatekeepers' to secondary care. We investigates the impact of the UK fundholding scheme under which general practices could elect to hold a budget to meet the costs of elective surgery for their patients. We use a differences in differences methodology on a large four year panel of English general practices before and after the abolition of fundholding. Fundholding incentives reduced fundholder elective admission rates by 3.3% and accounted for 57% of the difference between fundholder and nonfundholder elective admissions, with 43% a selection effect due to unobservable differences in practice characteristics. Fundholding had no effect on emergency admissions.
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Bibliographic InfoPaper provided by Department of Economics, University of York in its series Discussion Papers with number 03/04.
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Postal: Department of Economics and Related Studies, University of York, York, YO10 5DD, United Kingdom
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Budgets; Health care; Fundholding; Admission rates;
Other versions of this item:
- Mark Dusheiko & Hugh Gravelle & Rowena Jacobs & Peter Smith, 2003. "The Effects of Budgets on Doctors Behaviour: Evidence from a Natural Experiment," The Centre for Market and Public Organisation 03/064, Department of Economics, University of Bristol, UK.
- I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-03-03 (All new papers)
- NEP-CDM-2003-03-03 (Collective Decision-Making)
- NEP-HEA-2003-03-03 (Health Economics)
- NEP-MIC-2003-03-03 (Microeconomics)
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CEPR Discussion Papers
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