Does Physician Dispensing Increase Drug Expenditures? Empirical Evidence from Switzerland

Kaiser, Boris; Schmid, Christian Philipp (2016). Does Physician Dispensing Increase Drug Expenditures? Empirical Evidence from Switzerland. Health economics, 25(1), pp. 71-90. John Wiley 10.1002/hec.3124

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This paper analyzes whether the opportunity for physicians to dispense drugs increases healthcare expenditures. We study the case of Switzerland, where dispensing physicians face financial incentives to overprescribe and sell more expensive pharmaceuticals. Using comprehensive physician-level data, we exploit the regional variation in the dispensing regime to estimate causal effects. The empirical strategy consists of a doubly-robust estimation that combines inverse probability weighting with regression. Our main finding suggests that dispensing leads to higher drug costs on the order of 34% per patient.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Economics

UniBE Contributor:

Kaiser, Boris and Schmid, Christian Philipp

Subjects:

300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

1057-9230

Publisher:

John Wiley

Language:

English

Submitter:

Eva Marina Zuberbühler

Date Deposited:

11 Jul 2017 09:41

Last Modified:

11 Jul 2017 09:41

Publisher DOI:

10.1002/hec.3124

BORIS DOI:

10.7892/boris.93181

URI:

https://boris.unibe.ch/id/eprint/93181

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