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Identifying demand for health resources using waiting times information.

R Blundell1, F Windmeijer

  • 1University College London, London, UK.

Health Economics
|September 13, 2000
PubMed
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Understanding health service demand requires accounting for waiting times. Relaxing equilibrium assumptions and using supply determinants as instruments reveals critical factors influencing patient choices and resource allocation in the UK.

Area of Science:

  • Health economics
  • Public health policy
  • Econometrics

Background:

  • Identifying determinants of demand for health services is crucial for effective resource allocation.
  • Standard models often overlook the impact of waiting times as a rationing mechanism.
  • Previous research has not fully addressed the endogeneity of waiting times in demand analysis.

Purpose of the Study:

  • To identify the determinants of demand for health services by analyzing differences in average waiting times.
  • To relax the full equilibrium assumption in waiting time frameworks by employing a (semi-)parametric selection model.
  • To estimate a model for the demand for acute health services at the ward level in the UK.

Main Methods:

  • Utilized differences in average waiting times to infer demand determinants.

Related Experiment Videos

  • Employed a (semi-)parametric selection model, relaxing the full equilibrium assumption by selecting low waiting time areas.
  • Used determinants of supply as instrumental variables for the endogeneity of waiting times.

    • Main Results:

    • Estimated a demand model for acute services at the UK ward level.
    • Results indicate that waiting times significantly influence the observed utilization of health services.
    • Accounting for rationing by waiting times is critical for accurately identifying health needs from utilization data.

    Conclusions:

    • Standard health service allocation models may be inaccurate if they do not account for waiting time rationing.
    • The findings have significant implications for improving the allocation of health services in the UK.
    • Accurate identification of health needs requires incorporating waiting time dynamics into utilization analyses.