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Dangerous Prescribing and Healthcare Fragmentation: Evidence from Opioids

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  • Keith Marzilli Ericson
  • Adam Sacarny
  • R. Annetta Zhou

Abstract

Fragmented healthcare received from many different physicians results in higher costs and lower quality, but does it contribute to dangerous opioid prescribing? The effect is theoretically ambiguous because fragmentation can trigger costly coordination failures but also permits greater specialization. We examine dangerous opioid prescribing, defined as receiving high dosages, long prescription durations, or harmfully interacting medications. Cross-sectionally, regions with higher fragmentation have lower levels of dangerous opioid prescribing. This relationship is associational and may result from unobserved patient-level confounders. Identifying the impact of healthcare fragmentation by examining patients who move across regions, we find a relatively precise null effect of fragmentation on dangerous opioid prescribing. These results cast doubt on the role of fragmentation in this phenomenon and highlight the potential role of other forces in driving it.

Suggested Citation

  • Keith Marzilli Ericson & Adam Sacarny & R. Annetta Zhou, 2022. "Dangerous Prescribing and Healthcare Fragmentation: Evidence from Opioids," NBER Working Papers 29992, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:29992
    Note: AG EH
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    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I12 - Health, Education, and Welfare - - Health - - - Health Behavior
    • L14 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Transactional Relationships; Contracts and Reputation
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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