Related Experiment Video
Updated: Mar 15, 2026
06:03
Operational and Intervention Effects of Targeted Tuina in Lumbar Intervertebral Disc Degeneration Model Rabbits
Published on: July 21, 2023
1.0K
Does Competition Have an Effect on Price and Quality in Physiotherapy?
Piia Pekola1, Ismo Linnosmaa2, Hennamari Mikkola3
1Research Department, Social Insurance Institution of Finland, Helsinki, Finland.
Health Economics
|September 14, 2016
Summary
Competition in Finland's physiotherapy market weakly reduces quality and does not affect prices. This may stem from insufficient patient information, hindering informed choices and impacting provider quality strategies.
Area of Science:
- Health Economics
- Public Policy
- Healthcare Management
Background:
- Physiotherapy services in Finland for disabled individuals are organized and financed by the Social Insurance Institution of Finland.
- The market features competitive bidding, market-determined prices, and free services at the point of use.
- Firms can only differentiate themselves by enhancing service quality in response to patient choice.
Purpose of the Study:
- To estimate the effect of market competition on the quality and prices of physiotherapy services.
- To investigate the role of imperfect information in the relationship between competition, quality, and pricing.
Main Methods:
- Analysis of firm-level data (n=854) on quality and price.
- Application of two-stage least squares (2SLS) estimation techniques.
- Examination of the relationship between quality and competition, and price and competition.
Main Results:
- Competition was found to have a weak, negative effect on service quality.
- Prices were not significantly affected by the level of competition.
- Competition was identified as an exogenous variable in this market context.
Conclusions:
- Imperfect patient information, due to insufficient data from the Social Insurance Institution of Finland, likely explains the weak impact of competition on quality.
- Publishing quality information could empower patients, improve decision-making, and influence firms' quality enhancement strategies.
- Policy interventions focusing on information provision are recommended to improve market outcomes in physiotherapy.
Related Concept Videos
01:24Chest Physiotherapy
2.3K
Chest Physiotherapy (CPT) is a therapeutic technique used in respiratory care to improve ventilation, clear bronchial secretions, and enhance the efficiency of respiratory muscles. This therapy includes three primary procedures: postural drainage, percussion, and vibration. It can be performed on spontaneously breathing patients and those who are intubated and mechanically ventilated.
Purpose
CPT is primarily used for patients with excessive bronchial secretions who have difficulty clearing...
Purpose
CPT is primarily used for patients with excessive bronchial secretions who have difficulty clearing...
2.3K
02:34Competition
25.3K
When organisms require the same limited resources within an environment, they may have to compete for them. Competition is a net-negative interaction. Even if two competing individuals or populations do not interact directly, the overall fitness of both competitors is lowered as a result of not having full access to the limited resource.
25.3K
01:19Pharmaceutical Alternatives: Excipients and Impurities-Related Therapeutic Nonequivalence
219
Pharmaceutical products contain more than just the active drug; they also contain various excipients such as binders, solubilizers, stabilizers, preservatives, and other elements. In some cases, impurities or contaminants might be present. Traditionally, quality control in pharmaceuticals has primarily focused on the analysis of the active drug, often overlooking the impact of these additional components. The recent issue with heparin contamination by over-sulfated chondroitin sulfate, a...
219
01:22Pharmaceutical Alternatives: Stability-Related Therapeutic Nonequivalence
235
Generic intravenous (IV) drugs are considered bioequivalent to their branded counterparts due to their 100% bioavailability upon administration. However, variations in stability among different drug products can significantly influence their therapeutic performance, even if they are pharmaceutically equivalent.Cefuroxime, a prophylactic antimicrobial, is often used as a single-dose IV injection for patients undergoing coronary artery bypass grafting surgery. A 3 g dose typically provides...
235
01:27Nondepolarizing (Competitive) Neuromuscular Blockers: Pharmacological Actions
1.1K
Nondepolarizing neuromuscular blockers prevent the membrane depolarization of muscle cells and inhibit muscle contraction. These are usually administered with anesthetics to achieve complete muscle relaxation. Upon administration, these drugs first block the small, rapidly contracting muscles of the face and hands, followed by the larger muscles of the trunk and the intercostal muscles. The diaphragm is the last muscle to be affected.
Although all competitive neuromuscular blockers are designed...
Although all competitive neuromuscular blockers are designed...
1.1K
01:27Pharmaceutical Alternatives: Polymorphic Form-Related and Particle Size-Related Therapeutic Nonequivalence
211
Changes in polymorphic forms can significantly influence the bioavailability of poorly soluble drugs. Although the FDA defines pharmaceutical equivalence based on having the same active ingredient, dosage form, and route of administration, it does not automatically disqualify products with different polymorphic forms. This means two products with different polymorphs can still be deemed pharmaceutically equivalent. However, polymorphic differences can affect properties like wettability,...
211