Department of Political Science

Søren Serritzlew

Health care utilization: Supplier induction and economic cost containment

Research output: Contribution to conferencePaperResearchpeer-review

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.
Original languageEnglish
Publication year3 Nov 2011
Number of pages25
Publication statusPublished - 3 Nov 2011
EventThe Association for Public Policy and Management Conference - Washington DC, United States
Duration: 3 Nov 20115 Nov 2011


ConferenceThe Association for Public Policy and Management Conference
CountryUnited States
CityWashington DC

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