Does Physician Dispensing Increase Drug Expenditures?
We analyze whether the possibility for physicians to dispense drugs increases health care expenditures due to the incentives created by the markup on drugs sold. Using comprehensive physician-level data from Switzerland, we exploit the fact that there is regional variation in the dispensing regime to estimate policy effects. The empirical strategy consists of doubly-robust estimation which combines inverse-probability weighting with regression. Our main finding suggests that if dispensing is permitted, physicians produce significantly higher drug costs in the order of 30% per patient.
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"Antibiotic consumption and the role of dispensing physicians,"
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"Dealing with limited overlap in estimation of average treatment effects,"
Biometrika Trust, vol. 96(1), pages 187-199.
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"Nonparametric Estimation of Average Treatment Effects under Exogeneity: A Review,"
NBER Technical Working Papers
0294, National Bureau of Economic Research, Inc.
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