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Home sweet home: GPs’ response to an increase in the fee size for home visits

Author

Listed:
  • Jamie O’Halloran

    (University of Southern Denmark)

  • Anne Sophie Oxholm

    (University of Southern Denmark)

  • Line Bjørnskov Pedersen

    (University of Southern Denmark
    University of Southern Denmark)

  • Dorte Gyrd-Hansen

    (University of Southern Denmark)

Abstract

In many health care systems GPs receive fees for their services. Policymakers may use the size of these fees to try to incentivise GPs to provide more care. However, evidence is mixed on whether and how GPs respond to an increase in the fee size. This study investigates how GPs respond to an average increase of 150% in the fee for a high-effort and infrequent service such as a home visit due to patients’ illness. We consider Danish GPs’ provision of these visits to enlisted patients living outside of nursing homes. Using linear regressions with general practice fixed effects and a rich number of control variables, we estimate the association between GPs’ provision of these home visits and the fee rise. On average, we find no association between the fee rise and GPs’ provision of home visits. However, we find that GPs who previously provided the fewest home visits to eligible patients increase their provision by 13% after the fee rise compared to other GPs. This increase in visits is driven by more patients receiving multiple visits after the fee rise. We conclude that a fee rise may not yield a strong response in GPs’ provision of high-effort and infrequent services such as home visits.

Suggested Citation

  • Jamie O’Halloran & Anne Sophie Oxholm & Line Bjørnskov Pedersen & Dorte Gyrd-Hansen, 2021. "Home sweet home: GPs’ response to an increase in the fee size for home visits," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 22(6), pages 977-989, August.
    • Handle: RePEc:spr:eujhec:v:22:y:2021:i:6:d:10.1007_s10198-021-01302-3
    DOI: 10.1007/s10198-021-01302-3
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    References listed on IDEAS

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    1. Brekke, Kurt R. & Holmås, Tor Helge & Monstad, Karin & Straume, Odd Rune, 2017. "Do treatment decisions depend on physicians' financial incentives?," Journal of Public Economics, Elsevier, vol. 155(C), pages 74-92.
    2. Fredrik Carlsen & Jostein Grytten & Irene Skau, 2003. "Financial incentives and the supply of laboratory tests," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 4(4), pages 279-285, December.
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    Cited by:

    1. Jamie O’Halloran & Anne Sophie Oxholm & Line Bjørnskov Pedersen & Dorte Gyrd‐Hansen, 2024. "Going the extra mile? General practitioners' upcoding of fees for home visits," Health Economics, John Wiley & Sons, Ltd., vol. 33(2), pages 197-203, February.

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