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The Diversity of Concentrated Prescribing Behavior:  An Application to Antipsychotics Anna Levine Taub, Anton D. Kolotilin, Robert S. Gibbons and Ernst R. Berndt Special thanks to the IMS Health Services Research Network for data support The usual disclaimers apply.  This research has not been sponsored.
Scenario:  Physician sees patient… ,[object Object],[object Object],[object Object],[object Object]
Issues We Address ,[object Object],[object Object],[object Object]
Related Literature and Findings ,[object Object],[object Object],[object Object]
Outline of Remaining Presentation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Schizophrenia ,[object Object],[object Object],[object Object],[object Object]
Available Treatments for Schizophrenia ,[object Object],[object Object],[object Object]
Second Generation Atypicals (SGAs) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Typical and Atypical Prescriptions  Annually 1996-2007
Preliminary Evidence on Concentration ,[object Object],[object Object],[object Object]
Regional Geographic Variations as in Dartmouth Studies?  No!!! ,[object Object],[object Object],[object Object]
Antipsychotic HHIs in 2007 at Alternative Geographic Aggregates Means, Standard Deviations and Coefficients of Variation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How can we explain the wide variance in the way physicians respond to patients?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How can we explain the wide variance in the way physicians respond to patients?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How can we explain the wide variance in the way physicians respond to patients?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How can we explain the wide variance in the way physicians respond to patients?  ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning to Concentrate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Learning to Concentrate: Intuition ,[object Object],[object Object],[object Object],[object Object]
Learning to Concentrate ,[object Object],[object Object]
Learning to Concentrate: Intuition Cont’d ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Predictions From This Model ,[object Object],[object Object],[object Object]
Limitations of This Model ,[object Object],[object Object]
Physician Prescribing Data ,[object Object],[object Object],[object Object]
Five Prescriber Groups ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mean Values of Characteristics of 2007 Prescriber Sample, by Prescriber Specialty Specialty Group Number of Prescribers Antipsychotic Annual Rx Atypical Annual Rx No. Distinct Antipsychotics No. Distinct Atypicals  Antips-ychotic HHI Atypical HHI PSY 3463 609.56 551.37 7.46 4.71 3,245 3,661 NEU 728 97.64 82.30 3.60 2.33 5,657 7,025 PCP 9544 68.03 52.82 4.31 2.73 4,612 5,915 OTH 4161 54.24 29.53 2.76 1.65 6,912 7,081 NP 1641 174.85 155.30 4.29 2.88 5,181 5,633
Prescriber Data ,[object Object],[object Object]
Additional Measure of Diversity ,[object Object],[object Object],[object Object]
Alternative Dependent Variables  ,[object Object],[object Object]
Common Set of Explanatory Variables  in Regression Equations ,[object Object],[object Object],[object Object],[object Object],[object Object]
Summary Statistics Variable Obs Mean Std. Dev. Minimum Maximum Deviation of Physician's Antipsychotic prescribing from HRR Shares 17,652 2,660 2,441 5 10,321 Deviation of Physician's Antipsychotic prescribing from National Market Shares 17,652 2,735 2,499 30 10,051 HHI of Individual Physician's Antipsychotic Prescribing 17,652 4,920 2,484 1,196 10,000 HHI of Individual Physician's Atypical  Prescribing 16,262 5,708 2,498 1,701 10,000 % of Prescriptions for Antipsychotics that were for Atypicals 17,652 71.46 32.60 0 100 Number of Different Antipsychotics Prescribed  17,652 4.54 2.70 1 17 Number of Different Atypicals Prescribed  17,652 2.85 1.64 0 6 Total Yearly Antipsychotic Prescriptions 17,652 171.80 431.35 12 7,186 Total Yearly Atypical Antipsychotic Prescriptions 17,652 145.92 388.51 0 6,780 Prescriber Age 17,652 50.37 10.80 26 92 PCP 17,652 0.54 0.50 0 1 PSY 17,652 0.19 0.40 0 1 NEU 17,652 0.04 0.20 0 1 OTH 17,652 0.23 0.42 0 1 Solo Practice 17,652 0.20 0.40 0 1 Population (county) 17,652 1,065,738 1,810,008 1,299 9,734,701 Female 17,652 0.26 0.44 0 1 Hospital Based Physician 17,652 0.08 0.27 0 1 DO Flag 17,652 0.09 0.28 0 1 Physician Opt Out 17,652 0.03 0.18 0 1
Results: Variety of Drugs Prescribed ,[object Object],[object Object],[object Object]
Poisson Regressions: Number of Distinct Antipsychotic Molecules and Distinct Atypical Molecules prescribed in 2007 Number of Distinct Antipsychotics Number of Distinct Atypicals   Coefficient Standard Error P>|z| Coefficient Standard Error P>|z| Total Yearly Antipsychotic Prescriptions 0.001039 0.000048 <.001 0.001059 0.000061 <.001 PCP*Total Yearly Antipsychotic Prescriptions -0.000366 0.000051 <.001 -0.000405 0.000066 <.001 PSY*Total Yearly Antipsychotic Prescriptions -0.000792 0.000049 <.001 -0.000937 0.000062 <.001 NEU*Total Yearly Antipsychotic Prescriptions -0.000472 0.000071 <.001 -0.000478 0.000089 <.001 Age Quartile 43-50* 0.0374 0.0102 <.001 0.0113 0.0127 0.375 Age Quartile 51-58* 0.0513 0.0101 <.001 0.0152 0.0126 0.230 Age Quartile 59+* 0.0186 0.0107 0.081 -0.0423 0.0134 0.002 PCP* 0.4520 0.0115 <.001 0.5093 0.0148 <.001 PSY*  0.8965 0.0129 <.001 1.0558 0.0166 <.001 NEU*  0.2608 0.0233 <.001 0.3502 0.0292 <.001 Female* -0.0899 0.0084 <.001 -0.0308 0.0105 0.003 Population 150,000-500,000 (county)* -0.0357 0.0099 <.001 -0.0460 0.0126 <.001 Population 500,000-1,000,000 (county)* -0.0742 0.0105 <.001 -0.0900 0.0132 <.001 Population more than 1,000,000 (county)* -0.0692 0.0101 <.001 -0.0868 0.0127 <.001 Solo Practice* -0.0019 0.0091 0.831 -0.0086 0.0115 0.452 Hospital Based Physician* 0.0085 0.0125 0.497 -0.0124 0.0160 0.437 DO Flag* 0.0334 0.0129 0.010 0.0518 0.0161 0.001 Physician Opt Out* 0.0120 0.0190 0.530 0.0348 0.0238 0.144 Cons 0.9876 0.0141 <.001 0.4958 0.0179 <.001 Number of Observations= 17,652 Pseudo R^2= 0.145 Pseudo R^2= 0.1045
Results:  Old vs. New Antipsychotic Drugs ,[object Object],[object Object]
Tobit Regression (Marginal Effects Estimated at Variable Means) on  Percent of All Antipsychotic Prescriptions written for Atypicals in 2007    dy/dx Standard Error P>|z| Mean Value Total Yearly Antipsychotic Prescriptions 0.0108 0.0061 0.074 171.80 PCP*Total Yearly Antipsychotic Prescriptions 0.0154 0.0070 0.028 36.44 PSY*Total Yearly Antipsychotic Prescriptions -0.0155 0.0061 0.011 118.84 NEU*Total Yearly Antipsychotic Prescriptions 0.0032 0.0094 0.737 3.99 Age Quartile 43-50* -1.77 0.760 0.020 0.252 Age Quartile 51-58* -1.42 0.761 0.063 0.262 Age Quartile 59+* -2.00 0.810 0.014 0.222 PCP* 17.02 0.793 <.001 0.536 PSY*  44.72 1.035 <.001 0.194 NEU*  27.66 1.660 <.001 0.041 Female* 6.68 0.640 <.001 0.263 Population 150,000-500,000 (county)* -3.55 0.760 <.001 0.262 Population 500,000-1,000,000 (county)* -5.65 0.796 <.001 0.225 Population more than 1,000,000 (county)* -7.30 0.769 <.001 0.264 Solo Practice* 0.310 0.682 0.650 0.199 Hospital Based Physician* -2.67 0.995 0.007 0.081 DO Flag* 0.103 0.970 0.915 0.086 Physician Opt Out* 2.74 1.486 0.065 0.034 Number of Observations= 17,652 Pseudo R ^2 = 0.017 Left Censored=0  Right Censored=3,353 * dy/dx is for a discrete change of a dummy variable from 0 to 1
Prescriber Concentration:  HHI for All Antipsychotics and Just Atypicals ,[object Object],[object Object]
Tobit Regressions (Marginal Effects Evaluated at Variable Means)  on Log (Antipsychotic Prescription HHI for 2007) and Log (Atypical Antipsychotic Prescription HHI for 2007) Antipsychotic HHI Atypical HHI   dy/dx Standard Error P>|z| Mean Value dy/dx Standard Error P>|z| Mean Value Total Yearly Antipsychotic Prescriptions -0.000821 0.000080 <.001 171.80 -0.001026 0.000080 <.001 182.67 PCP*Total Yearly Antipsychotic Prescriptions -0.000149 0.000090 0.089 36.44 -0.000051 0.000090 0.557 39.04 PSY*Total Yearly Antipsychotic Prescriptions 0.000626 0.000080 <.001 118.84 0.000859 0.000080 <.001 128.99 NEU*Total Yearly Antipsychotic Prescriptions 0.000359 0.000120 0.002 3.99 0.000384 0.000110 0.001 4.30 Age Quartile 43-50* -0.029 0.010 0.002 0.252 0.002 0.009 0.869 0.252 Age Quartile 51-58* -0.039 0.010 <.001 0.262 0.008 0.009 0.424 0.262 Age Quartile 59+* -0.019 0.010 0.067 0.222 0.055 0.010 <.001 0.223 PCP* -0.435 0.010 <.001 0.536 -0.206 0.011 <.001 0.563 PSY*  -0.761 0.013 <.001 0.194 -0.708 0.013 <.001 0.210 NEU*  -0.238 0.021 <.001 0.041 -0.011 0.021 0.592 0.043 Female* 0.057 0.008 <.001 0.263 0.034 0.008 <.001 0.267 Population 150,000-500,000 (county)* 0.020 0.010 0.037 0.262 0.013 0.009 0.159 0.261 Population 500,000-1,000,000 (county)* 0.040 0.010 <.001 0.225 0.052 0.010 <.001 0.225 Population more than 1,000,000 (county)* 0.032 0.010 0.001 0.264 0.047 0.010 <.001 0.262 Solo Practice* -0.005 0.009 0.582 0.199 0.017 0.009 0.046 0.201 Hospital Based Physician* 0.019 0.013 0.119 0.081 -0.003 0.013 0.805 0.079 DO Flag* -0.023 0.012 0.056 0.086 -0.029 0.012 0.014 0.088 Physician Opt Out* -0.035 0.019 0.056 0.034 -0.037 0.018 0.043 0.035 Number of Observations= 17,652 Number of Observations= 16,262 Pseudo R^2= 0.218 Pseudo R^2= 0.22 Left Censored=0  Right Censored=1,571 Left Censored=0  Right Censored=2,606 * dy/dx is for a discrete change of a dummy variable from 0 to 1
Deviance from National and HRR Market Share Norms ,[object Object],[object Object]
Linear Regression on Log (Deviance in Physician Antipsychotic  Prescribing from National Market Shares)   Coefficient Standard Error P>|z| Total Yearly Antipsychotic Prescriptions -0.00131 0.00014 <.001 PCP*Total Yearly Antipsychotic Prescriptions -0.00079 0.00016 <.001 PSY*Total Yearly Antipsychotic Prescriptions 0.00079 0.00014 <.001 NEU*Total Yearly Antipsychotic Prescriptions 0.00059 0.00022 0.008 Age Quartile 43-50* -0.013 0.018 0.456 Age Quartile 51-58* -0.007 0.018 0.674 Age Quartile 59+* 0.054 0.019 0.005 PCP* -0.661 0.019 <.001 PSY*  -1.458 0.024 <.001 NEU*  -0.499 0.039 <.001 Female* 0.045 0.015 0.003 Population 150,000-500,000 (county)* 0.021 0.018 0.228 Population 500,000-1,000,000 (county)* 0.101 0.019 <.001 Population more than 1,000,000 (county)* 0.085 0.018 <.001 Solo Practice* 0.012 0.016 0.469 Hospital Based Physician* 0.025 0.023 0.283 DO Flag* -0.036 0.023 0.110 Physician Opt Out* -0.052 0.035 0.134 Cons 8.204 0.023 <.001 Number of Observations= 17,652 R^2= 0.345 * indicates dummy variable
Robustness Checks ,[object Object],[object Object],[object Object]
Discussion: I ,[object Object],[object Object],[object Object]
Discussion: II ,[object Object],[object Object],[object Object]
Discussion: III ,[object Object],[object Object],[object Object],[object Object]
Discussion: IV ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

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LDI Research Seminar 2_18_11 The Diversity of Concentrated Prescribing Behavior V4

  • 1. The Diversity of Concentrated Prescribing Behavior: An Application to Antipsychotics Anna Levine Taub, Anton D. Kolotilin, Robert S. Gibbons and Ernst R. Berndt Special thanks to the IMS Health Services Research Network for data support The usual disclaimers apply. This research has not been sponsored.
  • 2.
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  • 9. Typical and Atypical Prescriptions Annually 1996-2007
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  • 25. Mean Values of Characteristics of 2007 Prescriber Sample, by Prescriber Specialty Specialty Group Number of Prescribers Antipsychotic Annual Rx Atypical Annual Rx No. Distinct Antipsychotics No. Distinct Atypicals Antips-ychotic HHI Atypical HHI PSY 3463 609.56 551.37 7.46 4.71 3,245 3,661 NEU 728 97.64 82.30 3.60 2.33 5,657 7,025 PCP 9544 68.03 52.82 4.31 2.73 4,612 5,915 OTH 4161 54.24 29.53 2.76 1.65 6,912 7,081 NP 1641 174.85 155.30 4.29 2.88 5,181 5,633
  • 26.
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  • 30. Summary Statistics Variable Obs Mean Std. Dev. Minimum Maximum Deviation of Physician's Antipsychotic prescribing from HRR Shares 17,652 2,660 2,441 5 10,321 Deviation of Physician's Antipsychotic prescribing from National Market Shares 17,652 2,735 2,499 30 10,051 HHI of Individual Physician's Antipsychotic Prescribing 17,652 4,920 2,484 1,196 10,000 HHI of Individual Physician's Atypical Prescribing 16,262 5,708 2,498 1,701 10,000 % of Prescriptions for Antipsychotics that were for Atypicals 17,652 71.46 32.60 0 100 Number of Different Antipsychotics Prescribed 17,652 4.54 2.70 1 17 Number of Different Atypicals Prescribed 17,652 2.85 1.64 0 6 Total Yearly Antipsychotic Prescriptions 17,652 171.80 431.35 12 7,186 Total Yearly Atypical Antipsychotic Prescriptions 17,652 145.92 388.51 0 6,780 Prescriber Age 17,652 50.37 10.80 26 92 PCP 17,652 0.54 0.50 0 1 PSY 17,652 0.19 0.40 0 1 NEU 17,652 0.04 0.20 0 1 OTH 17,652 0.23 0.42 0 1 Solo Practice 17,652 0.20 0.40 0 1 Population (county) 17,652 1,065,738 1,810,008 1,299 9,734,701 Female 17,652 0.26 0.44 0 1 Hospital Based Physician 17,652 0.08 0.27 0 1 DO Flag 17,652 0.09 0.28 0 1 Physician Opt Out 17,652 0.03 0.18 0 1
  • 31.
  • 32. Poisson Regressions: Number of Distinct Antipsychotic Molecules and Distinct Atypical Molecules prescribed in 2007 Number of Distinct Antipsychotics Number of Distinct Atypicals   Coefficient Standard Error P>|z| Coefficient Standard Error P>|z| Total Yearly Antipsychotic Prescriptions 0.001039 0.000048 <.001 0.001059 0.000061 <.001 PCP*Total Yearly Antipsychotic Prescriptions -0.000366 0.000051 <.001 -0.000405 0.000066 <.001 PSY*Total Yearly Antipsychotic Prescriptions -0.000792 0.000049 <.001 -0.000937 0.000062 <.001 NEU*Total Yearly Antipsychotic Prescriptions -0.000472 0.000071 <.001 -0.000478 0.000089 <.001 Age Quartile 43-50* 0.0374 0.0102 <.001 0.0113 0.0127 0.375 Age Quartile 51-58* 0.0513 0.0101 <.001 0.0152 0.0126 0.230 Age Quartile 59+* 0.0186 0.0107 0.081 -0.0423 0.0134 0.002 PCP* 0.4520 0.0115 <.001 0.5093 0.0148 <.001 PSY* 0.8965 0.0129 <.001 1.0558 0.0166 <.001 NEU* 0.2608 0.0233 <.001 0.3502 0.0292 <.001 Female* -0.0899 0.0084 <.001 -0.0308 0.0105 0.003 Population 150,000-500,000 (county)* -0.0357 0.0099 <.001 -0.0460 0.0126 <.001 Population 500,000-1,000,000 (county)* -0.0742 0.0105 <.001 -0.0900 0.0132 <.001 Population more than 1,000,000 (county)* -0.0692 0.0101 <.001 -0.0868 0.0127 <.001 Solo Practice* -0.0019 0.0091 0.831 -0.0086 0.0115 0.452 Hospital Based Physician* 0.0085 0.0125 0.497 -0.0124 0.0160 0.437 DO Flag* 0.0334 0.0129 0.010 0.0518 0.0161 0.001 Physician Opt Out* 0.0120 0.0190 0.530 0.0348 0.0238 0.144 Cons 0.9876 0.0141 <.001 0.4958 0.0179 <.001 Number of Observations= 17,652 Pseudo R^2= 0.145 Pseudo R^2= 0.1045
  • 33.
  • 34. Tobit Regression (Marginal Effects Estimated at Variable Means) on Percent of All Antipsychotic Prescriptions written for Atypicals in 2007    dy/dx Standard Error P>|z| Mean Value Total Yearly Antipsychotic Prescriptions 0.0108 0.0061 0.074 171.80 PCP*Total Yearly Antipsychotic Prescriptions 0.0154 0.0070 0.028 36.44 PSY*Total Yearly Antipsychotic Prescriptions -0.0155 0.0061 0.011 118.84 NEU*Total Yearly Antipsychotic Prescriptions 0.0032 0.0094 0.737 3.99 Age Quartile 43-50* -1.77 0.760 0.020 0.252 Age Quartile 51-58* -1.42 0.761 0.063 0.262 Age Quartile 59+* -2.00 0.810 0.014 0.222 PCP* 17.02 0.793 <.001 0.536 PSY* 44.72 1.035 <.001 0.194 NEU* 27.66 1.660 <.001 0.041 Female* 6.68 0.640 <.001 0.263 Population 150,000-500,000 (county)* -3.55 0.760 <.001 0.262 Population 500,000-1,000,000 (county)* -5.65 0.796 <.001 0.225 Population more than 1,000,000 (county)* -7.30 0.769 <.001 0.264 Solo Practice* 0.310 0.682 0.650 0.199 Hospital Based Physician* -2.67 0.995 0.007 0.081 DO Flag* 0.103 0.970 0.915 0.086 Physician Opt Out* 2.74 1.486 0.065 0.034 Number of Observations= 17,652 Pseudo R ^2 = 0.017 Left Censored=0 Right Censored=3,353 * dy/dx is for a discrete change of a dummy variable from 0 to 1
  • 35.
  • 36. Tobit Regressions (Marginal Effects Evaluated at Variable Means) on Log (Antipsychotic Prescription HHI for 2007) and Log (Atypical Antipsychotic Prescription HHI for 2007) Antipsychotic HHI Atypical HHI   dy/dx Standard Error P>|z| Mean Value dy/dx Standard Error P>|z| Mean Value Total Yearly Antipsychotic Prescriptions -0.000821 0.000080 <.001 171.80 -0.001026 0.000080 <.001 182.67 PCP*Total Yearly Antipsychotic Prescriptions -0.000149 0.000090 0.089 36.44 -0.000051 0.000090 0.557 39.04 PSY*Total Yearly Antipsychotic Prescriptions 0.000626 0.000080 <.001 118.84 0.000859 0.000080 <.001 128.99 NEU*Total Yearly Antipsychotic Prescriptions 0.000359 0.000120 0.002 3.99 0.000384 0.000110 0.001 4.30 Age Quartile 43-50* -0.029 0.010 0.002 0.252 0.002 0.009 0.869 0.252 Age Quartile 51-58* -0.039 0.010 <.001 0.262 0.008 0.009 0.424 0.262 Age Quartile 59+* -0.019 0.010 0.067 0.222 0.055 0.010 <.001 0.223 PCP* -0.435 0.010 <.001 0.536 -0.206 0.011 <.001 0.563 PSY* -0.761 0.013 <.001 0.194 -0.708 0.013 <.001 0.210 NEU* -0.238 0.021 <.001 0.041 -0.011 0.021 0.592 0.043 Female* 0.057 0.008 <.001 0.263 0.034 0.008 <.001 0.267 Population 150,000-500,000 (county)* 0.020 0.010 0.037 0.262 0.013 0.009 0.159 0.261 Population 500,000-1,000,000 (county)* 0.040 0.010 <.001 0.225 0.052 0.010 <.001 0.225 Population more than 1,000,000 (county)* 0.032 0.010 0.001 0.264 0.047 0.010 <.001 0.262 Solo Practice* -0.005 0.009 0.582 0.199 0.017 0.009 0.046 0.201 Hospital Based Physician* 0.019 0.013 0.119 0.081 -0.003 0.013 0.805 0.079 DO Flag* -0.023 0.012 0.056 0.086 -0.029 0.012 0.014 0.088 Physician Opt Out* -0.035 0.019 0.056 0.034 -0.037 0.018 0.043 0.035 Number of Observations= 17,652 Number of Observations= 16,262 Pseudo R^2= 0.218 Pseudo R^2= 0.22 Left Censored=0 Right Censored=1,571 Left Censored=0 Right Censored=2,606 * dy/dx is for a discrete change of a dummy variable from 0 to 1
  • 37.
  • 38. Linear Regression on Log (Deviance in Physician Antipsychotic Prescribing from National Market Shares)   Coefficient Standard Error P>|z| Total Yearly Antipsychotic Prescriptions -0.00131 0.00014 <.001 PCP*Total Yearly Antipsychotic Prescriptions -0.00079 0.00016 <.001 PSY*Total Yearly Antipsychotic Prescriptions 0.00079 0.00014 <.001 NEU*Total Yearly Antipsychotic Prescriptions 0.00059 0.00022 0.008 Age Quartile 43-50* -0.013 0.018 0.456 Age Quartile 51-58* -0.007 0.018 0.674 Age Quartile 59+* 0.054 0.019 0.005 PCP* -0.661 0.019 <.001 PSY* -1.458 0.024 <.001 NEU* -0.499 0.039 <.001 Female* 0.045 0.015 0.003 Population 150,000-500,000 (county)* 0.021 0.018 0.228 Population 500,000-1,000,000 (county)* 0.101 0.019 <.001 Population more than 1,000,000 (county)* 0.085 0.018 <.001 Solo Practice* 0.012 0.016 0.469 Hospital Based Physician* 0.025 0.023 0.283 DO Flag* -0.036 0.023 0.110 Physician Opt Out* -0.052 0.035 0.134 Cons 8.204 0.023 <.001 Number of Observations= 17,652 R^2= 0.345 * indicates dummy variable
  • 39.
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  • 43.

Editor's Notes

  1. Risperdal has also lost patent protection in 2008.
  2. Despite the controversy over relative efficacy and cost-effectiveness of typicals vs. atypicals, based on a 10% random sample of antipsychotic prescribers, the number of atypical Rxs dispensed between 1996 and 2007 increased sevenfold from about 400K in 1996 to 2,800K in 2007, even as the number of conventional or typical Rxs fell 45% from 1,100,000 in 1996 to about 500K in 2003, and has stabilized since then. Atypical share has tripled from about 27% in 1996 to 85% in 2007. Also notable is the fact that despite all the concerns about the safety and efficacy of antipsychotics, total number of antipsychotics dispensed – typical plus atypical – more than doubled between 1996 and 2007, from about 1.5m to about 3.3m, an AAGR of 7.4%. Expanded sales in part due to additional FDA indication approvals. Approved by FDA for additional indications -- mania phase of bipolar II, and for depression. Clozapine approved for prevention of suicidality.
  3. HHI for atypicals at end of previous slide is 2443. Note sure why it isn’t higher, given next slide. Typicals 15%, next slide for all antipsychotics?
  4. At the individual prescriber level, prescribing behavior is very concentrated (HHIs almost 5000), but there is also substantial variability, with the COV just over 0.5. However, as one aggregates into larger regions, not only is less concentrated prescribing behavior observed, but so too is less relative variability, particularly as one moves from the county to the HRR geographical aggregate. In particular, 95% of the difference in mean HHI between individual prescriber and national level shares disappears at the HRR level, and 99% disappears at the state level. Within Phelps’ classification scheme, antipsychotic prescribing behavior is highly variable at the individual and county level, but is low variability behavior at the HRR and larger regional aggregates.
  5. Gibbons and Henderson have looked at phenomenon of persistent differences in other context.
  6. Administration could be a plausible phenomenon in a number of drug classes where there are strict formulary restrictions that vary across insurers, but for antipsychotics formularies have not only been open, but there’s been a substantial number of drugs available at each copayment tier (private sector), and for Medicaid, hardly any copayment or formulary restrictions for antipsychotics. So we rule “administration” out as a plausible explanatory factor.
  7. This leaves us with three possibilities. While we won’t entirely rule out perception and motivation, here we focus on inspiration.
  8. In the bandit model we have one learner who does not know the efficacy of each drug. Like a bandit model, our model has Bayesian learning, but our learning is about how to use a drug, rather than about its underlying efficacy for given symptoms. That is, the maximum potential benefit Bsd is known in our model. Full Comment from Bob: In the bandit model we have one learner who does not know the efficacy of each drug. The economists and statisticians who develop and apply models like this usually (to my knowledge) do not have in mind that another learner is seeing the decisions of the first learner. In our setting, however, one might think that a prescriber could see the nation-wide market shares of the drugs, which would give that prescriber information about what others had decided (and, implicitly, about what others had learned). As is mentioned in Section D below, this would be something like “herding,” except in this case prescribers would herd towards the correct answer (whereas the point of models like Banerjee and Bikhchandani-Hirshliefer-Welch is that people herd toward the wrong answer). Of course, our main empirical finding is quite the opposite of herding (whether to the right or the wrong answer): prescribers persist in doing different things. We therefore choose a model where these differences in behavior persist even if prescribers observe nation-wide market shares. Like a bandit model, ours does have Bayesian learning, but our learning is about how to use a drug, rather than about its underlying efficacy for given symptoms. That is, Bsd is known in our model. As a result, our model has the same reduced form as another class of models called “learning” models, namely models of “learning curves” or “learning by doing,” where costs fall as experience rises. For what it is worth, note that these models are (typically) deterministic; they do not have Bayesian learning. As with bandit models, I’m not sure that people who play with “learning curve” models typically think much about whether you can benefit from my learning. Or, I guess what I should say is that they implicitly or explicitly assume that you cannot benefit from my learning (i.e., to reduce your costs, you have to go through your own experience), but they don’t say much or anything about why this is the case. What I think is good about our model, relative to both bandit models and “learning curve” models, is that we are explicit about why seeing nation-wide market shares won’t change the behavior of a given prescriber: you have to learn how to use a drug, and no amount of being told that other people have learned how to use it can teach you how to use it; you have to do it yourself. In short, our model can be seen as micro foundations for “learning curve” models. Hope this helps 
  9. We assume θ d and ε dp are normally distributed random variables with mean zero and variances σ 2 d and σ 2 ε , respectively, for all d, p . In addition we assume θ d and ε dp are independently distributed from one another. We also assume θ d is independent across drugs and ε dp is independent across drugs and across patients.
  10. Re bullet 2: For exposition, could also say “but not on the symptoms” – but not necessary assumption Re bullet 4: For exposition, could also say “but not on the patient’s presentation of symptoms for whom the physician prescribes this drug – but not necessary assumption
  11. Note: The way this model is set up, there are no principal agent problems here. All patient encounters are weighted equally, subject to discounting.
  12. In analysis only use physicians who dispensed at least 10 antipsychotic scrips in 2007.
  13. More than half the sample PCPs, but relative to NPs and NEU, and especially PSY, PCPs write relatively few antipsychotic prescriptions. PCPs also prescribe surprising variety of distinct antipsychotics, although their HHI is quite high.
  14. Since we are dealing with a psychopharmaceutical product, appropriate that we denote our measure of difference from regional shares as deviance (deviants?).