Competition Among Pharmacies as a Determinant of Drug Expenditures
This study explored and compared the associations between pharmacy competition and drug expenditures by individuals with influenza. This study used a dataset consisting of 6 694 534 individuals who purchased drugs for influenza at pharmacies from 2015 to 2019 in China. Patients’ annual average influ...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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SAGE Publishing
2024-12-01
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| Series: | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| Online Access: | https://doi.org/10.1177/00469580241307446 |
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| _version_ | 1850104352680706048 |
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| author | Zixuan Peng PhD Audrey Laporte PhD Xiaolin Wei PhD Peter C. Coyte PhD |
| author_facet | Zixuan Peng PhD Audrey Laporte PhD Xiaolin Wei PhD Peter C. Coyte PhD |
| author_sort | Zixuan Peng PhD |
| collection | DOAJ |
| description | This study explored and compared the associations between pharmacy competition and drug expenditures by individuals with influenza. This study used a dataset consisting of 6 694 534 individuals who purchased drugs for influenza at pharmacies from 2015 to 2019 in China. Patients’ annual average influenza-specific drug expenditures per visit at pharmacies was the outcome variable of interest. Pharmacy competition was measured using the Herfindahl-Hirschman index. A 3-way fixed-effects model combined with a lagged identification strategy was constructed to estimate the association between pharmacy competition and drug expenditures. When the radius of the market was set to 1, 5, and 10 km, for each 10% increase in the degree of total competition in the market, an individual’s annual average influenza-specific drug expenditures per visit fell by 0.65%, 2.21%, and 5.20%, respectively. With a more detailed understanding of the underlying mechanism through which pharmacy competition affects the behaviors of health care providers, competition can be considered as a potential tool to assist decision makers in the design of policies to curtail the growth in drug expenditures. |
| format | Article |
| id | doaj-art-12a88c3564b74c6f8b338dface02654e |
| institution | DOAJ |
| issn | 0046-9580 1945-7243 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | SAGE Publishing |
| record_format | Article |
| series | Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| spelling | doaj-art-12a88c3564b74c6f8b338dface02654e2025-08-20T02:39:21ZengSAGE PublishingInquiry: The Journal of Health Care Organization, Provision, and Financing0046-95801945-72432024-12-016110.1177/00469580241307446Competition Among Pharmacies as a Determinant of Drug ExpendituresZixuan Peng PhD0Audrey Laporte PhD1Xiaolin Wei PhD2Peter C. Coyte PhD3Southeast University, Nanjing, Jiangsu Province, ChinaUniversity of Toronto, Toronto, ON, CanadaUniversity of Toronto, Toronto, ON, CanadaUniversity of Toronto, Toronto, ON, CanadaThis study explored and compared the associations between pharmacy competition and drug expenditures by individuals with influenza. This study used a dataset consisting of 6 694 534 individuals who purchased drugs for influenza at pharmacies from 2015 to 2019 in China. Patients’ annual average influenza-specific drug expenditures per visit at pharmacies was the outcome variable of interest. Pharmacy competition was measured using the Herfindahl-Hirschman index. A 3-way fixed-effects model combined with a lagged identification strategy was constructed to estimate the association between pharmacy competition and drug expenditures. When the radius of the market was set to 1, 5, and 10 km, for each 10% increase in the degree of total competition in the market, an individual’s annual average influenza-specific drug expenditures per visit fell by 0.65%, 2.21%, and 5.20%, respectively. With a more detailed understanding of the underlying mechanism through which pharmacy competition affects the behaviors of health care providers, competition can be considered as a potential tool to assist decision makers in the design of policies to curtail the growth in drug expenditures.https://doi.org/10.1177/00469580241307446 |
| spellingShingle | Zixuan Peng PhD Audrey Laporte PhD Xiaolin Wei PhD Peter C. Coyte PhD Competition Among Pharmacies as a Determinant of Drug Expenditures Inquiry: The Journal of Health Care Organization, Provision, and Financing |
| title | Competition Among Pharmacies as a Determinant of Drug Expenditures |
| title_full | Competition Among Pharmacies as a Determinant of Drug Expenditures |
| title_fullStr | Competition Among Pharmacies as a Determinant of Drug Expenditures |
| title_full_unstemmed | Competition Among Pharmacies as a Determinant of Drug Expenditures |
| title_short | Competition Among Pharmacies as a Determinant of Drug Expenditures |
| title_sort | competition among pharmacies as a determinant of drug expenditures |
| url | https://doi.org/10.1177/00469580241307446 |
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