Supplier induction and economic cost containmentUdbudsinduktion og økonomisk omkostningsbegrænsning
An important task in governing health services is to control costs. The literatures on both costcontainment and supplier induced demand focus on the effects of economic incentives on health care costs, but insights from these literatures have never been integrated. This paper asks how economic cost containment measures affect the utilization of health services, and how these measures interact with the number of patients per provider. Based on very valid register data, this is investigated for 9.556 Danish physiotherapists between 2001 and 2008. We find that higher (relative) fees for a given service make health professionals provide more of this service to each patient, but that lower user payment (unexpectedly) does not necessarily mean higher total cost or a stronger association between the number of patients per supplier and the health care utilization. This implies that incentives are important, but that economics cannot alone explain the differences in health care utilization.
Health care services; Health care costs; Supplier inducement; Cost containment; Physiotherapy
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The Association for Public Policy and Management Conference, 2011