Causes and Consequences of Regional Variations in Health Care
Jonathan Skinner ()
Chapter Chapter Two in Handbook of Health Economics, 2011, vol. 2, pp 45-93 from Elsevier
There are widespread differences in health care spending and utilization across regions of the US as well as in other countries. Are these variations caused by demand-side factors such as patient preferences, health status, income, or access? Or are they caused by supply-side factors such as provider financial incentives, beliefs, ability, or practice norms? In this chapter, I first consider regional health care differences in the context of a simple demand and supply model, and then focus on the empirical evidence documenting causes of variations. While demand factors are importantâ€”health in particularâ€”there remains strong evidence for supply-driven differences in utilization. I then consider evidence on the causal impact of spending on outcomes, and conclude that it is less important how much money is spent, and far more important how the money is spentâ€”whether for highly effective treatments such as beta blockers or anti-retroviral treatments for AIDS patients, or ineffective treatments such as feeding tubes for advanced dementia patients.
Keywords: health economics; health care productivity; spatial models; regional variations; small-area analysis (search for similar items in EconPapers)
JEL-codes: I10 I11 I12 I18 R12 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Downloads: (external link)
Full text for ScienceDirect subscribers only
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:eee:heachp:2-45
Access Statistics for this chapter
More chapters in Handbook of Health Economics from Elsevier
Bibliographic data for series maintained by Haili He ().