A Study of Supplier-Induced Demand in Hospital Services Market

Autor: Pei-Chi Yu, 余珮琦
Rok vydání: 2003
Druh dokumentu: 學位論文 ; thesis
Popis: 91
According to many researches in other countries, there is a positive correlation between the utilization of medical services and the degree of competition in the health care market. The most typical illustration was the Roemer’s law “A bed built is a bed filled.” It shows the existence of supplier-induced demand in the health care market. Thus, an increase in health care resources may increase the degree of competition in local market and raise the possibility of induced demand. Therefore, the propose of the study was to investigate the existence of supplier-induced demand of hospitals under the competition pressure. The study was based on NHI data bank from 1996 to 2001. It would find the relationship between the degree of area competition and the volume of inpatients and medical expenditure per admission for individual hospitals while controlling the inpatients’ disease complex level, age, gender, and household income. It also used the quantitative method of difference-in-difference (DID) to detect the impact of operation pressure on the volume of inpatients and medical expenditure of hospitals. In this study, same results were found while using several indices of competitive degree, such as the HHI (Herfindahl Index), the numbers of hospital physicians per 10,000, and the hospital beds per 10,000. It shows that there was a negative correlation between the degree of competition and the medical expenditure per admission, expenditure of laboratory test, and expenditure of treatment in a given hospital. However, the impacts of the degree of competition on the volume of inpatients and medical expenditure were not consistent. In the models, at hospital level, hospital ownership and patients’ age were the major factors to explain the medical expenditure. Moreover, even the hospitals are under operation pressure, they do not induce the inpatient volume to maintain their income. While using different ways to analyze the association between the degree of competition (or operation pressure) and the volume of inpatients and medical expenditure, the study found no obvious evidence to support the SID theory in Taiwan’s medical market. We do hope that other researchers can overtake the barrier and limitation of study and find more appropriate methods in dealing with these issues.
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