With the spread of cost-based hospital payment systems in the United States in the 1960s, and the implementation of the Medicare and Medicaid programs in 1966, rapidly rising hospital costs imposed unexpected pressures on Federal and state budgets and generated a demand for regulatory...

This chapter describes the market for pharmaceuticals, which exceeded $500 million in sales in 2010. The industry is also characterized by extensive regulation of almost every activity, from product development through manufacturing and marketing, which we summarize. We next describe the...

Patents are often portrayed as the necessary reward to compensate pharmaceutical firms for the huge costs and risks associated with Food and Drug Administration (FDA)-mandated clinical trials of new drugs. But the relationship between the patent system and other regulation of drugs is more...

Using econometric evidence, this article confirms that distribution of medicines online is split into two market segments of very diverse quality, and identifies the factors that drive quality and quality assurance in this activity. Unlike fraudulent, 'rogue,' websites, which offer scant...

We study optimal risk adjustment in imperfectly competitive health insurance markets when high-risk consumers are less likely to switch insurer than low-risk consumers. First, we find that insurers still have an incentive to select even if risk adjustment perfectly corrects for cost differences...

Canada's Patented Medicines (Notice Of Compliance) Regulations fail to achieve the intended purpose of balancing innovation with timely generic market entry. An examination of the inefficiencies created by the Canadian regulations reveals that key features of U.S. pharmaceutical law should be...

There is now agreement that around 10 per cent of all hospital admissions to acute care hospitals give rise to preventable adverse events. These high levels of injury throw into sharp relief the unfairness of the tort based system of compensation for medically related injury where a relatively...

We report results from the first randomization of a regulatory reform in the health sector. The reform established minimum quality standards for patient safety, an issue that has become increasingly salient following the Ebola and COVID-19 epidemics. In our experiment, all 1348 health facilities...

During the state of epidemic in Poland in 2020, all facilities providing medical services were subject to constant reorganization. Legal changes, which were introduced at a very rapid pace, did not allow the standardization of the work of the health service. Therefore, the assessment of the...