IDEAS home Printed from https://ideas.repec.org/a/spr/pharme/v24y2006i3p5-25.html
   My bibliography  Save this article

The Effect of Using Newer Drugs on Admissions of Elderly Americans to Hospitals and Nursing Homes: State-level Evidence from 1997 to 2003

Author

Listed:
  • Frank Lichtenberg

    ()

Abstract

Objective: To test the hypothesis that, ceteris paribus, people using newer, or later vintage drugs will be in better health, and will therefore be less likely to be admitted to hospitals and nursing homes, by examining the effect of pharmaceutical innovation on the utilisation of hospital and long-term care by elderly Americans during 1997–2003. Design: An estimation of difference-in-differences models of hospital discharge rates using longitudinal state-level data on 12 states. Data on the utilisation of over 43 000 products, by state and year, were obtained from state Medicaid agencies. The extent of utilisation of new drugs in the Medicaid programme is strongly correlated with the extent of utilisation of new drugs in general. Patients or study participants: All elderly residents of 12 states during the period 1997–2003. Intervention: The relative utilisation of new and old drugs. Main outcome measures: Discharges per elderly individual, discharges to nursing homes per elderly individual, and inpatient deaths per elderly individual. Results: States that had larger increases in drug vintage had smaller increases in the number of hospital discharges per elderly individual. They also had smaller increases in the number of hospital discharges to nursing homes and the number of in-hospital deaths per elderly individual. Conclusions: Even the upper-bound estimate of the increase in 2003 drug expenditure attributable to the 1997–2003 increase in drug vintage is lower than the sum of the lowest estimates of the 2003 hospital and nursing home expenditure reductions attributable to the 1997–2003 increase in drug vintage. Copyright Adis Data Information BV 2006

Suggested Citation

  • Frank Lichtenberg, 2006. "The Effect of Using Newer Drugs on Admissions of Elderly Americans to Hospitals and Nursing Homes: State-level Evidence from 1997 to 2003," PharmacoEconomics, Springer, vol. 24(3), pages 5-25, December.
  • Handle: RePEc:spr:pharme:v:24:y:2006:i:3:p:5-25
    DOI: 10.2165/00019053-200624003-00002
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.2165/00019053-200624003-00002
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Plutarchos Sakellaris & Daniel J. Wilson, 2004. "Quantifying Embodied Technological Change," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 7(1), pages 1-26, January.
    2. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, vol. 101(4), pages 561-583, August.
    3. Charles R. Hulten, 1992. "Growth Accounting When Technical Change is Embodied in Capital," NBER Working Papers 3971, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karine Lamiraud & Stephane Lhuillery, 2016. "Endogenous Technology Adoption and Medical Costs," Health Economics, John Wiley & Sons, Ltd., vol. 25(9), pages 1123-1147, September.
    2. de Meijer, Claudine & O’Donnell, Owen & Koopmanschap, Marc & van Doorslaer, Eddy, 2013. "Health expenditure growth: Looking beyond the average through decomposition of the full distribution," Journal of Health Economics, Elsevier, vol. 32(1), pages 88-105.
    3. Michel Dumont & Peter Willemé, 2013. "Working Paper 02-13 - Machines that go ‘ping’: medical technology and health expenditures in OECD countries," Working Papers 1302, Federal Planning Bureau, Belgium.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:pharme:v:24:y:2006:i:3:p:5-25. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.