Demand for medical care in the urban areas of Iran: an empirical investigation

This paper adapts a multinomial logit model to obtain the parameter estimates of demand with multiple choices for medical care services in the urban areas of Iran. The objective is to verify the effectiveness of the cost recovery policy by the Medical Services Insurance Organization of Iran. The res...

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Bibliographic Details
Published in:Health economics 2008-07, Vol.17 (7), p.849-862
Main Authors: Kermani, Majid S., Ghaderi, Hossein, Yousefi, Ayoub
Format: Article
Language:English
Subjects:
Cost effectiveness
Cost recovery
Cost Sharing
demand for medical care services
Health care
Health care policy
Health economics
Health Expenditures - statistics & numerical data
Health Services Needs and Demand - economics
Health services utilization
Humans
Income - statistics & numerical data
Iran
Mathematical models
Medical services
Models, Statistical
multinomial logit model
Parameter estimation
Recovery
Socioeconomic Factors
State Health Plans - economics
State Health Plans - organization & administration
Studies
Urban areas
Urban Population - statistics & numerical data
user fee
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Summary:This paper adapts a multinomial logit model to obtain the parameter estimates of demand with multiple choices for medical care services in the urban areas of Iran. The objective is to verify the effectiveness of the cost recovery policy by the Medical Services Insurance Organization of Iran. The results suggest that an out‐of‐pocket fee increase will not be conducive to the cost recovery and any increase in price would have a serious negative impact on the likelihood of healthcare utilization. Income appears to have a significant positive effect on the decision to seek medical care and the choice of facilities. Patients from wealthy families seem to seek more health care and prefer private facilities. Copyright © 2007 John Wiley & Sons, Ltd.
ISSN:1057-9230
1099-1050
DOI:10.1002/hec.1308