Digital Waste? Unintended Consequences of Health Information Technology
VATT Institute for Economic Research Working Papers 117
74 Pages Posted: 6 May 2019
Date Written: April 4, 2019
We exploit a large-scale natural experiment - the rollout of a nationwide electronic prescribing system in Finland - to study how digitization of prescriptions affects pharmaceutical use and health outcomes. We use comprehensive administrative data from patients treated with benzodiazepines, which are globally popular, effective but addictive psychotropic medications. We find no impact on benzodiazepine use on average, but among younger patients e-prescribing increases repeat prescription use. Younger patients' health outcomes do not improve but adverse outcomes, such as prescription drug abuse disorders and suicide attempts, increase dramatically. Improving access to medication through easier ordering may thus increase medication overuse.
Keywords: health information technology, electronic prescribing, repeat prescriptions, inefficiency, medication overuse
JEL Classification: H51, H75, I12, I18
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