TY  - JOUR
AU  - Frank,Richard G.
AU  - Berndt,Ernst R.
AU  - Busch,Susan H.
TI  - Price Indexes for the Treatment of Depression
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 6417
PY  - 1998
Y2  - February 1998
UR  - http://www.nber.org/papers/w6417
L1  - http://www.nber.org/papers/w6417.pdf
N1  - Author contact info:
Richard Frank
Department of Health Care Policy
Harvard Medical School
180 Longwood Avenue
Boston, MA 02115
Tel: 617/432-0178
Fax: 617/432-1219
E-Mail: frank@hcp.med.harvard.edu

Ernst R. Berndt
MIT Sloan School of Management
100 Main Street, E62-518
Cambridge, MA 02142
Tel: 617/253-2665
Fax: 617-227-0880
E-Mail: eberndt@mit.edu

sbusch
M2  - featured in NBER digest on 1998-08-01
AB  - We construct price indexes for treatment of a specific illness, acute phase major depression, using treatment episodes of care (rather than fixed input bundles) to define quantity.  We identify different treatment service bundles that combine varying quantities of prescription drugs, medical management and psychotherapy.  We make use of results from clinical research and official government guidelines for standards of care to identify therapeutically similar treatment bundles.  We then employ various index number formulae that involve differing assumptions on the extent of ex ante substitutability among these treatment bundles.  Rather than using list prices, we utilize actual transactions data based on a MEDSTAT retrospective medical claims data base covering more than 400,000 individuals over the 1991-95 time period.  We distinguish between consumers' direct payments (a CPI index) and total payments received by providers (a PPI). Although not directly comparable to BLS indexes indicating 15-25% price growth 1991-95, our CPI and PPI price indexes decline 20-30%, implying an average annual price differential from BLS indexes of about -15%.
ER  -