3058.0: Monday, October 22, 2001 - 1:15 PM

Abstract #24140

The Economics of Proper Drug Use: the Cross-Elasticity of Pharmaceutical Expenditure and other Service Expenditures among Patients with Essential Hypertension

Ke Tom Xu, PhD, Department of Health Services Research and Management, Texas Tech University Health Sciences Center, 3601 4th Street, Room 1C165A, Lubbock, TX 79430, (806)743-6983, somktx@ttuhsc.edu and Sidney P. Phillips, School of Pharmacy, Texas Tech University Health Sciences Center.

Objectives. This study answered three questions: 1) What are the risk factors associated with not receiving drugs recommended by JNC? 2) Are pharmaceuticals and other health services treating hypertension economic substitutes or complements? 3) Does the proper utilization of drugs lead to lower cost for other health services?

Data and Methods. Data used for analyses were extracted from a national representative data set, MEPS 1996 (AHRQ). Prescriptions for hypertensive patients in 1996 were extracted from the data. Each prescription record was identified as first-line recommended drug, second-line recommended drug, or non-recommended drugs. Expenditures for drugs, hospitalization, outpatient services, emergency room services, office-based physician services and home health services for treating hypertension in 1996 were calculated. To determine the risk factors for receiving a particular drug regimen, a multinomial logit model was estimated. To determine whether pharmaceuticals and other services are economic substitutes or complements, a log-log regression was performed.

Findings. Patients with shorter hypertension history had higher odds of receiving recommended drugs. Other cardiovascular conditions decreased the odds of receiving second-line drugs. The cross-elasticity between other service expenditure and first-line, second-line and non-recommended drugs were 0.11, 0.17 and 0.14, respectively. It shows that pharmaceuticals and other services were complements. First-line drugs incurred the least increment in expenditures in other services treating hypertension.

Conclusions. Although pharmaceuticals and other health services for treating essential hypertension are economic complements, proper use of pharmaceuticals according to the recommendation of JNC is associated with a lower increase in the expenditures for other services.

Learning Objectives: At the conclusion of the session, the participant (learner) in this session will be able to: 1) Identify risk factors associated with not receiving drugs recommended by JNC among hypertensive patients 2) Assess the economic impact of proper drug utilization in treating hypertension. 3) Apply the research method to other chronic diseases.

Keywords: Economic Analysis, Drug Use Variation

Presenting author's disclosure statement:
Organization/institution whose products or services will be discussed: None
I do not have any significant financial interest/arrangement or affiliation with any organization/institution whose products or services are being discussed in this session.

The 129th Annual Meeting of APHA