The Effects of Budgets on Doctors Behaviour: Evidence from a Natural Experiment

Research output: Other contribution


In many health care systems primary care physicians act as 'gatekeepers' to secondary care. We investigates the impact of the UK fundholding scheme under which general practices could elect to hold a budget to meet the costs of elective surgery for their patients. We use a differences in differences methodology on a large four year panel of English general practices before and after the abolition of fundholding. Fundholding incentives reduced fundholder elective admission rates by 3.3% and accounted for 57% of the difference between fundholder and nonfundholder elective admissions, with 43% a selection effect due to unobservable differences in practice characteristics. Fundholding had no effect on emergency admissions.
Original languageUndefined/Unknown
PublisherDERS, University of York
Publication statusPublished - 2003

Publication series

NameDERS Discussion Paper

Bibliographical note

DP No 03/04

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