Does prevention in primary care reduce costs in primary or secondary care?
Presented by Dr Jemimah Ride (University of Melbourne)
A largely unexplored part of the financial incentive for physicians to participate in preventive care is the degree to which they are the residual claimant from any resulting cost savings. In this paper, we examine the impact of two preventive activities (care plans and annual reviews of physical health for people with serious mental illness) by English primary care practices on costs in these practices and in other parts of the healthcare sector. Using a panel two-part model to analyse patient-level data linked across primary and secondary care sectors, we find that these types of preventive activity in previous year are associated with cost reductions in the current quarter both in primary care and in other parts of healthcare. We estimate that there are large beneficial externalities for which the primary care physician is not the residual claimant: the cost savings in other parts of healthcare are 4.1 and 2.8 times larger than the cost savings in primary care for care plans and annual reviews respectively.
Speaker
Dr Jemimah Ride is a medically qualified health economist and Research Fellow in the Health Economics Unit at the University of Melbourne where she leads the mental health research stream. Her research addresses preferences for mental health care, distribution of care, and mental health care policy. Prior to returning to Melbourne she was a Research Fellow in the Centre for Health Economics at the University of York.
Register now
Contact shannon.stanwell@monash.edu for registration details.
Event Details
- Date:
- 21 July 2021 at 12:00 pm – 1:00 pm
- Venue:
- Online
- Categories:
- Health Economics; CHE Seminar
Description
Presented by Dr Jemimah Ride (University of Melbourne)
A largely unexplored part of the financial incentive for physicians to participate in preventive care is the degree to which they are the residual claimant from any resulting cost savings. In this paper, we examine the impact of two preventive activities (care plans and annual reviews of physical health for people with serious mental illness) by English primary care practices on costs in these practices and in other parts of the healthcare sector. Using a panel two-part model to analyse patient-level data linked across primary and secondary care sectors, we find that these types of preventive activity in previous year are associated with cost reductions in the current quarter both in primary care and in other parts of healthcare. We estimate that there are large beneficial externalities for which the primary care physician is not the residual claimant: the cost savings in other parts of healthcare are 4.1 and 2.8 times larger than the cost savings in primary care for care plans and annual reviews respectively.
Speaker
Dr Jemimah Ride is a medically qualified health economist and Research Fellow in the Health Economics Unit at the University of Melbourne where she leads the mental health research stream. Her research addresses preferences for mental health care, distribution of care, and mental health care policy. Prior to returning to Melbourne she was a Research Fellow in the Centre for Health Economics at the University of York.
Register now
Contact shannon.stanwell@monash.edu for registration details.