Prescribing Behavior of General Practitioners

Competition Matters!

C.B.C. Schaumans

Research output: Working paperDiscussion paperOther research output

427 Downloads (Pure)

Abstract

Background: General Practitioners have limited means to compete. As quality is hard to observe by patients, GPs have incentives to signal quality by using instruments patients perceive as quality.
Objectives: We investigate whether GPs exhibit different prescribing behavior (volume and value of prescriptions) when confronted with more competition. As there is no monetary benefit in doing so, this type of (perceived) quality competition originates from GPs satisfying patients’ expectations.
Method: We look at market level data on per capita and per contact number of items prescribed by GPs and the value of prescriptions for the Belgian market of General Practitioners. We test to which extent different types of variables explain the observed variation. We consider patient characteristics, GP characteristics, number and type of GP contacts and the level of competition. The level of competition is measured by GP density, after controlling for the number of GPs and a HHI.
Results: We find that a higher number of GPs per capita results in a higher number of units prescribed by GPs, both per capita and per contact. We argue that this is consistent with quality competition in the GP market. Our findings reject alternative explanations of GP scarcity, availability effect in GP care consumption and GP dispersing prescription in time due to competition.
Original languageEnglish
Place of PublicationTilburg
PublisherTILEC
Number of pages21
Volume2014-014
Publication statusPublished - 1 Apr 2014

Publication series

NameTILEC Discussion Paper
Volume2014-014

Fingerprint

Prescribing
General practitioners
Prescription
Quality competition
Perceived quality
Incentives
Scarcity
Quality signal

Keywords

  • Competition
  • General Practitioners
  • Prescription
  • Drugs
  • Quality

Cite this

Schaumans, C. B. C. (2014). Prescribing Behavior of General Practitioners: Competition Matters! (TILEC Discussion Paper; Vol. 2014-014). Tilburg: TILEC.
Schaumans, C.B.C. / Prescribing Behavior of General Practitioners : Competition Matters!. Tilburg : TILEC, 2014. (TILEC Discussion Paper).
@techreport{c8445d1f66f84238835ed3b342438147,
title = "Prescribing Behavior of General Practitioners: Competition Matters!",
abstract = "Background: General Practitioners have limited means to compete. As quality is hard to observe by patients, GPs have incentives to signal quality by using instruments patients perceive as quality.Objectives: We investigate whether GPs exhibit different prescribing behavior (volume and value of prescriptions) when confronted with more competition. As there is no monetary benefit in doing so, this type of (perceived) quality competition originates from GPs satisfying patients’ expectations.Method: We look at market level data on per capita and per contact number of items prescribed by GPs and the value of prescriptions for the Belgian market of General Practitioners. We test to which extent different types of variables explain the observed variation. We consider patient characteristics, GP characteristics, number and type of GP contacts and the level of competition. The level of competition is measured by GP density, after controlling for the number of GPs and a HHI.Results: We find that a higher number of GPs per capita results in a higher number of units prescribed by GPs, both per capita and per contact. We argue that this is consistent with quality competition in the GP market. Our findings reject alternative explanations of GP scarcity, availability effect in GP care consumption and GP dispersing prescription in time due to competition.",
keywords = "Competition, General Practitioners, Prescription, Drugs, Quality",
author = "C.B.C. Schaumans",
year = "2014",
month = "4",
day = "1",
language = "English",
volume = "2014-014",
series = "TILEC Discussion Paper",
publisher = "TILEC",
type = "WorkingPaper",
institution = "TILEC",

}

Schaumans, CBC 2014 'Prescribing Behavior of General Practitioners: Competition Matters!' TILEC Discussion Paper, vol. 2014-014, TILEC, Tilburg.

Prescribing Behavior of General Practitioners : Competition Matters! / Schaumans, C.B.C.

Tilburg : TILEC, 2014. (TILEC Discussion Paper; Vol. 2014-014).

Research output: Working paperDiscussion paperOther research output

TY - UNPB

T1 - Prescribing Behavior of General Practitioners

T2 - Competition Matters!

AU - Schaumans, C.B.C.

PY - 2014/4/1

Y1 - 2014/4/1

N2 - Background: General Practitioners have limited means to compete. As quality is hard to observe by patients, GPs have incentives to signal quality by using instruments patients perceive as quality.Objectives: We investigate whether GPs exhibit different prescribing behavior (volume and value of prescriptions) when confronted with more competition. As there is no monetary benefit in doing so, this type of (perceived) quality competition originates from GPs satisfying patients’ expectations.Method: We look at market level data on per capita and per contact number of items prescribed by GPs and the value of prescriptions for the Belgian market of General Practitioners. We test to which extent different types of variables explain the observed variation. We consider patient characteristics, GP characteristics, number and type of GP contacts and the level of competition. The level of competition is measured by GP density, after controlling for the number of GPs and a HHI.Results: We find that a higher number of GPs per capita results in a higher number of units prescribed by GPs, both per capita and per contact. We argue that this is consistent with quality competition in the GP market. Our findings reject alternative explanations of GP scarcity, availability effect in GP care consumption and GP dispersing prescription in time due to competition.

AB - Background: General Practitioners have limited means to compete. As quality is hard to observe by patients, GPs have incentives to signal quality by using instruments patients perceive as quality.Objectives: We investigate whether GPs exhibit different prescribing behavior (volume and value of prescriptions) when confronted with more competition. As there is no monetary benefit in doing so, this type of (perceived) quality competition originates from GPs satisfying patients’ expectations.Method: We look at market level data on per capita and per contact number of items prescribed by GPs and the value of prescriptions for the Belgian market of General Practitioners. We test to which extent different types of variables explain the observed variation. We consider patient characteristics, GP characteristics, number and type of GP contacts and the level of competition. The level of competition is measured by GP density, after controlling for the number of GPs and a HHI.Results: We find that a higher number of GPs per capita results in a higher number of units prescribed by GPs, both per capita and per contact. We argue that this is consistent with quality competition in the GP market. Our findings reject alternative explanations of GP scarcity, availability effect in GP care consumption and GP dispersing prescription in time due to competition.

KW - Competition

KW - General Practitioners

KW - Prescription

KW - Drugs

KW - Quality

M3 - Discussion paper

VL - 2014-014

T3 - TILEC Discussion Paper

BT - Prescribing Behavior of General Practitioners

PB - TILEC

CY - Tilburg

ER -

Schaumans CBC. Prescribing Behavior of General Practitioners: Competition Matters! Tilburg: TILEC. 2014 Apr 1. (TILEC Discussion Paper).