NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Sharon-Lise Normand

Harvard University
Harvard Medical School
Department of Health Care
180 Longwood Avenue
Boston, MA 02115-5899

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NBER Working Papers and Publications

October 2006Cost-Offsets of New Medications for Treatment of Schizophrenia
with Richard G. Frank, Thomas G. McGuire: w12643
Broad claims are frequently made that new medications will offset all or part of their costs by reducing other areas of Medicaid spending. In this paper we examine the net impact on spending for new drugs used to treat schizophrenia. We extend research in this area by taking a new approach to identification of spending impacts of new drugs. We specify and estimate models of spending on treatment of schizophrenia using 7 years of Florida Medicaid data. The estimates indicate that use of the new drugs result in net spending increases. This may be due to increased adherence to treatment.
August 2005Real Output in Mental Health Care During the 1990s
with Ernst R. Berndt, Alisa B. Busch, Richard G. Frank: w11557
Health accounts document changes over time in the level and composition of health spending. There has been a continued evolution in the ability to track such outlays. Less rapid has been the ability to interpret changes in spending. In this paper we apply quality adjusted price indexes for several major mental disorders to national mental health account estimates to assess changes in real "output". We show that using the new price indexes reveals large gains in real output relative to application of BLS indexes.

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