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Do Drugs Reduce Utilisation of Other Healthcare Resources?

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  • Pierre-Yves Crémieux
  • Pierre Ouellette
  • Patrick Petit

Abstract

Using life expectancy as a general health indicator, results suggest that increases in drug spending could be more than offset by decreases in other healthcare spending without affecting the health of the population. This suggests that better access to drugs may be an effective strategy to decrease overall healthcare costs. Freeing up healthcare dollars by reallocating spending towards drugs could provide opportunities for overall healthcare cost savings without negatively impacting the health of the population. Copyright Adis Data Information BV 2007

Suggested Citation

  • Pierre-Yves Crémieux & Pierre Ouellette & Patrick Petit, 2007. "Do Drugs Reduce Utilisation of Other Healthcare Resources?," PharmacoEconomics, Springer, vol. 25(3), pages 209-221, March.
    • Handle: RePEc:spr:pharme:v:25:y:2007:i:3:p:209-221
    DOI: 10.2165/00019053-200725030-00004
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    References listed on IDEAS

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    1. Felder, Stefan & Meier, Markus & Schmitt, Horst, 2000. "Health care expenditure in the last months of life," Journal of Health Economics, Elsevier, vol. 19(5), pages 679-695, September.
    2. Pierre‐Yves Crémieux & Marie‐Claude Meilleur & Pierre Ouellette & Patrick Petit & Martin Zelder & Ken Potvin, 2005. "Public and private pharmaceutical spending as determinants of health outcomes in Canada," Health Economics, John Wiley & Sons, Ltd., vol. 14(2), pages 107-116, February.
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    5. David Johnson & Jongsay Yong, 2006. "Costly Ageing Or Costly Deaths? Understanding Health Care Expenditure Using Australian Medicare Payments Data," Australian Economic Papers, Wiley Blackwell, vol. 45(1), pages 57-74, March.
    6. Frank R. Lichtenberg, 2007. "Benefits and costs of newer drugs: an update," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 28(4-5), pages 485-490.
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    Cited by:

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    2. Rexford E. Santerre, 2011. "National and International Tests of the New Drug Cost Offset Theory," Southern Economic Journal, John Wiley & Sons, vol. 77(4), pages 1033-1043, April.
    3. Claude Montmarquette & Stéphanie Boulenger & Joanne Castonguay, 2014. "Les risques liés à la création de PHARMA-QUEBEC," CIRANO Project Reports 2014rp-05, CIRANO.
    4. Apostolos Tsiachristas† & Ren頇oudriaan & Wim Groot, 2013. "The welfare effects of innovative pharmaceuticals: an international perspective from the Dutch experience," Applied Economics, Taylor & Francis Journals, vol. 45(9), pages 1219-1226, March.
    5. Thierry Nianogo & Albert Okunade & Demba Fofana & Weiwei Chen, 2016. "Determinants of US Prescription Drug Utilization using County Level Data," Health Economics, John Wiley & Sons, Ltd., vol. 25(5), pages 606-619, May.

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