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A spatial analysis to evaluate the impact of deregulation policies in the pharmacy sector: Evidence from the case of Navarre

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  • Barbarisi, Ilaria
  • Bruno, Giuseppe
  • Diglio, Antonio
  • Elizalde, Javier
  • Piccolo, Carmela

Abstract

Community pharmacies represent unusual enterprises as their main function is intrinsically related to the provision of healthcare services. Hence, market competition in this sector needs to be regulated, in order to ensure equitable accessibility, efficiency and quality of services. However, recently a general deregulation trend may be observed in Europe. In this paper, we focus on location restrictions, i.e. on demographic and geographic constraints to open new pharmacies, and we evaluate the impact of their relaxation. In particular, we analyze the case of the city of Pamplona (ES), where a striking increase in the number of pharmacies occurred, after the introduction of a new regulatory system in 2000. We evaluate, thanks to an in-depth spatial analysis, the evolution of the system to date and the effects produced on the consumers, in terms of accessibility, and on the competitors, in terms of market shares distribution. By comparing the obtained results with the ones related to the case of a second Spanish city, characterized by more strict restrictions, it emerges that the deregulation risks to produce a limited improvement in terms of accessibility and to exacerbate differences among consumers. Moreover, an increasing number of competitors does not necessarily imply a more equitable distribution of market shares, thus putting at risk the desired effects in terms of cost reduction and service quality improvement.

Suggested Citation

  • Barbarisi, Ilaria & Bruno, Giuseppe & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2019. "A spatial analysis to evaluate the impact of deregulation policies in the pharmacy sector: Evidence from the case of Navarre," Health Policy, Elsevier, vol. 123(11), pages 1108-1115.
    • Handle: RePEc:eee:hepoli:v:123:y:2019:i:11:p:1108-1115
    DOI: 10.1016/j.healthpol.2019.08.010
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    References listed on IDEAS

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    1. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Elizalde, Javier & Piccolo, Carmela, 2022. "A locational analysis of deregulation policies in the Spanish retail pharmaceutical sector," Socio-Economic Planning Sciences, Elsevier, vol. 82(PA).
    2. Giuseppe Bruno & Manuel Cavola & Antonio Diglio & Carmela Piccolo, 2022. "Geographical accessibility to upper secondary education: an Italian regional case study," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 69(2), pages 511-536, October.
    3. Jo, Wooyong & Nam, Hyoryung & Choi, Jeonghye, 2022. "Opening the OTC drug market: The effect of deregulation on retail pharmacy’s performance," International Journal of Research in Marketing, Elsevier, vol. 39(3), pages 847-866.
    4. Mirosław Krzyśko & Waldemar Wołyńki & Marcin Szymkowiak & Andrzej Wojtyła, 2021. "A Spatio-Temporal Analysis of the Health Situation in Poland Based on Functional Discriminant Coordinates," IJERPH, MDPI, vol. 18(3), pages 1-17, January.
    5. Gallone, Emma Luisa & Ravetto Enri, Lorenzo & Pignata, Irene & Baratta, Francesca & Brusa, Paola, 2020. "The 2017 deregulation of pharmacies in Italy: Introducing non-pharmacist ownership," Health Policy, Elsevier, vol. 124(12), pages 1281-1286.
    6. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Piccolo, Carmela & Pipicelli, Eduardo, 2021. "Strategies to reduce postal network access points: from demographic to spatial distribution criteria," Utilities Policy, Elsevier, vol. 69(C).
    7. Bruno, Giuseppe & Cavola, Manuel & Diglio, Antonio & Piccolo, Carmela, 2020. "Improving spatial accessibility to regional health systems through facility capacity management," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).
    8. Vilhelmson, Bertil & Elldér, Erik, 2021. "Realizing proximity in times of deregulation and densification: Evaluating urban change from a welfare regime perspective," Journal of Transport Geography, Elsevier, vol. 94(C).

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