The role of government reimbursement in drug shortages
Publication
, Journal Article
Yurukoglu, A; Liebman, E; Ridley, DB
Published in: American Economic Journal: Economic Policy
May 1, 2017
Beginning in the mid- 2000s, the incidence of drug shortages rose, especially for generic injectable drugs such as anesthetics and chemotherapy treatments. We examine whether reimbursement changes contributed to the shortages, focusing on a reduction in Medicare Part B reimbursement to providers for drugs. We hypothesize that lower reimbursement put downward pressure on manufacturers' prices, which reduced manufacturers' incentives to invest in capacity, reliability, and new launches. We show that after the policy change, shortages rose more for drugs with higher shares of patients insured by Medicare, greater decreases in provider reimbursement, and greater decreases in manufacturer prices.
Duke Scholars
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Published In
American Economic Journal: Economic Policy
DOI
EISSN
1945-774X
ISSN
1945-7731
Publication Date
May 1, 2017
Volume
9
Issue
2
Start / End Page
348 / 382
Related Subject Headings
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics
Citation
APA
Chicago
ICMJE
MLA
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Yurukoglu, A., Liebman, E., & Ridley, D. B. (2017). The role of government reimbursement in drug shortages. American Economic Journal: Economic Policy, 9(2), 348–382. https://doi.org/10.1257/pol.20160035
Yurukoglu, A., E. Liebman, and D. B. Ridley. “The role of government reimbursement in drug shortages.” American Economic Journal: Economic Policy 9, no. 2 (May 1, 2017): 348–82. https://doi.org/10.1257/pol.20160035.
Yurukoglu A, Liebman E, Ridley DB. The role of government reimbursement in drug shortages. American Economic Journal: Economic Policy. 2017 May 1;9(2):348–82.
Yurukoglu, A., et al. “The role of government reimbursement in drug shortages.” American Economic Journal: Economic Policy, vol. 9, no. 2, May 2017, pp. 348–82. Scopus, doi:10.1257/pol.20160035.
Yurukoglu A, Liebman E, Ridley DB. The role of government reimbursement in drug shortages. American Economic Journal: Economic Policy. 2017 May 1;9(2):348–382.
Published In
American Economic Journal: Economic Policy
DOI
EISSN
1945-774X
ISSN
1945-7731
Publication Date
May 1, 2017
Volume
9
Issue
2
Start / End Page
348 / 382
Related Subject Headings
- 3801 Applied economics
- 3502 Banking, finance and investment
- 1402 Applied Economics