Effect of Strict and Soft Policy Interventions on Laboratory Diagnostic Testing in Ontario, Canada: A Bayesian Structural Time Series Analysis

Nadine Chami, Yin Li, Sharada Weir, James G. Wright and Jasmin Kantarevic

Health Policy, 2021, vol. 125, issue 2, 254-260

Abstract: Applications of behavioral economics targeted at optimizing laboratory utilization among physicians have been implemented in Ontario through different types of nonfinancial interventions. Strict policy interventions restrict Ontario Health Insurance Plan (OHIP) payment for tests to patients with specific conditions or limit ordering to particular physician specialties, while soft policy interventions involve modifications to the laboratory requisition form. This study evaluates the effectiveness of these interventions in terms of changing physician ordering behavior for eight tests that were subject to a strict or soft policy intervention during the study period. We use a Bayesian structural time series model applied to Ontario laboratory claims data for FY2006 through FY2017. Results show a 16–75% reduction in laboratory services with a strict policy intervention and an 8–36% reduction in laboratory services with a soft policy intervention. Although the overall magnitude of change was smaller for soft policy interventions, interventions designed with soft or strict policy mechanisms addressing laboratory utilization management are effective at influencing physicians’ test ordering behavior.

Keywords: laboratory utilization; physician ordering behavior; policy intervention; overuse of diagnostic testing (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:hepoli:v:125:y:2021:i:2:p:254-260

DOI: 10.1016/j.healthpol.2020.10.007

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