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Medical Fee Reforms, Changes In Medical Supply Densities, And Supplier-Induced Demand: Empirical Evidence From Japan

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  • YUDA, MICHIO

Abstract

This study empirically investigates whether several negative income shocks to medical suppliers lead them to provide patients with unnecessary and/or excessive treatments. We use a variable that is objectively assessed as representing inducement: the amount of fraudulent and/or incorrect claims detected during the bill inspection processes. The empirical results indicate that medical suppliers increase inducement by 7.5 percent in response to a 1 percent medical fee reduction, but that changes in medical supply densities do not affect it. We also find that medical suppliers in more competitive areas are more sensitive to medical fee reductions and that suppliers in low-density areas tend to provide inducements in response to patient shortages.

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  • Yuda, Michio, 2013. "Medical Fee Reforms, Changes In Medical Supply Densities, And Supplier-Induced Demand: Empirical Evidence From Japan," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 54(1), pages 79-93, June.
    • Handle: RePEc:hit:hitjec:v:54:y:2013:i:1:p:79-93
    DOI: 10.15057/25780
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    Cited by:

    1. Michio Yuda, 2018. "The medical assistance system and inpatient health care provision: Empirical evidence from short-term hospitalizations in Japan," PLOS ONE, Public Library of Science, vol. 13(10), pages 1-14, October.
    2. Randall S. Jones & Kohei Fukawa, 2017. "Ensuring Fiscal Sustainability in Japan in the Context of a Shrinking and Ageing Population," OECD Economics Department Working Papers 1413, OECD Publishing.
    3. Yuda, Michio, 2016. "Inefficiencies in the Japanese National Health Insurance system: A stochastic frontier approach," Journal of Asian Economics, Elsevier, vol. 42(C), pages 65-77.

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    More about this item

    Keywords

    supplier-induced demand; medical fee reforms; medical supply densities; reviews and checks of claim data; Japanese national health insurance;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • C36 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Instrumental Variables (IV) Estimation
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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