Does Physician Dispensing Increase Drug Expenditures?

Kaiser, Boris; Schmid, Christian (October 2013). Does Physician Dispensing Increase Drug Expenditures? (CRED Research Paper 2). Bern: CRED - Center for Regional Economic Development

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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 inverseprobability 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.

Item Type:

Working Paper

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics > Economic Policy and Regional Economics
03 Faculty of Business, Economics and Social Sciences > Department of Economics > Institute of Economics
11 Centers of Competence > Center for Regional Economic Development (CRED)

UniBE Contributor:

Kaiser, Boris and Schmid, Christian Philipp

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

Series:

CRED Research Paper

Publisher:

CRED - Center for Regional Economic Development

Language:

English

Submitter:

Melanie Moser

Date Deposited:

05 May 2020 11:22

Last Modified:

05 May 2020 11:22

BORIS DOI:

10.7892/boris.143548

URI:

https://boris.unibe.ch/id/eprint/143548

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