The Effects of Competition on Physician Prescribing / Janet Currie, Anran Li, Molly Schnell.

Format:

Book

Author/Creator:

Currie, Janet.

Contributor:

National Bureau of Economic Research.

Li, Anran.

Schnell, Molly.

Series:

Working Paper Series (National Bureau of Economic Research) no. w30889.

NBER working paper series no. w30889

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2023.

Summary:

We ask how competition influences the prescribing practices of physicians. Law changes granting nurse practitioners (NPs) the ability to prescribe controlled substances without physician collaboration or oversight generate exogenous variation in competition. In response, we find that general practice physicians (GPs) significantly increase their prescribing of controlled substances such as opioids and controlled anti-anxiety medications. GPs also increase their co-prescribing of opioids and benzodiazepines, a practice that goes against prescribing guidelines. These effects are more pronounced in areas with more NPs per GP at baseline, are concentrated in physician specialties that compete most directly with NPs, and are not observed for many non-controlled drug classes. Our findings are consistent with a simple model of physician behavior in which competition for patients leads physicians to move toward the preferences of marginal patients. These results demonstrate that more competition will not always lead to improvements in patient care and can instead lead to excessive service provision.

Notes:

Print version record

January 2023.