Hospitals and the generic versus brand-name prescription decision in the outpatient sector
Gerald Pruckner () and
No 2016-11, Economics working papers from Department of Economics, Johannes Kepler University Linz, Austria
Healthcare payers try to reduce costs by promoting the use of cheaper generic drugs. We show strong interrelations in drug prescriptions between the inpatient and outpatient sectors by using a large administrative dataset from Austria. Patients with prior hospital visits have a significantly lower probability of receiving a generic drug in the outpatient sector. The size of the effect depends on both the patient and doctor characteristics, which could be related to the differences in hospital treatment and heterogeneity in the physicians’ adherence to hospital choices. Our results suggest that hospital decisions create spillover costs in healthcare systems with separate funding for inpatient and outpatient care.
Keywords: Prescription decision; generic drugs; physician behavior; hospitals. (search for similar items in EconPapers)
JEL-codes: I11 I13 I18 H51 (search for similar items in EconPapers)
Pages: 298 pages
New Economics Papers: this item is included in nep-com, nep-eur, nep-hea and nep-ipr
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Journal Article: Hospitals and the generic versus brand‐name prescription decision in the outpatient sector (2018)
Working Paper: Hospitals and the generic versus brand-name prescription decision in the outpatient sector (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:jku:econwp:2016_11
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