Arbeitspapier

Hospitals and the generic versus brand-name prescription decision in the outpatient sector

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.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 1611

Classification
Wirtschaft
Analysis of Health Care Markets
Health Insurance, Public and Private
Health: Government Policy; Regulation; Public Health
National Government Expenditures and Health
Subject
prescription decision
generic drugs
physician behavior
hospitals

Event
Geistige Schöpfung
(who)
Pruckner, Gerald J.
Schober, Thomas
Event
Veröffentlichung
(who)
Johannes Kepler University of Linz, Department of Economics
(where)
Linz
(when)
2016

Handle
Last update
10.03.2025, 11:44 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Pruckner, Gerald J.
  • Schober, Thomas
  • Johannes Kepler University of Linz, Department of Economics

Time of origin

  • 2016

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