Economics at your fingertips  

Financial incentives and physician prescription behavior: Evidence from dispensing regulations

Daniel Burkhard, Christian Schmid () and Kaspar Wüthrich ()

Health Economics, 2019, vol. 28, issue 9, 1114-1129

Abstract: In many health care markets, physicians can respond to changes in reimbursement schemes by changing the volume (volume response) and the composition of services provided (substitution response). We examine the relative importance of these two behavioral responses in the context of physician drug dispensing in Switzerland. We find that dispensing increases drug costs by 52% for general practitioners and 56% for specialists. This increase is mainly due to a volume increase. The substitution response is negative on average, but not significantly different from zero for large parts of the distribution. In addition, our results reveal substantial effect heterogeneity.

Date: 2019
References: Add references at CitEc
Citations: Track citations by RSS feed

Downloads: (external link)

Related works:
Working Paper: Financial incentives and physician prescription behavior.Evidence from dispensing regulations (2018) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Health Economics is currently edited by Alan Maynard, John Hutton and Andrew Jones

More articles in Health Economics from John Wiley & Sons, Ltd.
Bibliographic data for series maintained by Wiley Content Delivery ().

Page updated 2019-09-17
Handle: RePEc:wly:hlthec:v:28:y:2019:i:9:p:1114-1129