The Importance of the Physician in the Generic and Trade-name Article

The Importance of the Physician in the Generic and Trade-name Prescription purpose - Article ExampleThe time frame and period analyzed in the whole clause ranges between 1984 and 1996. This is evident during the introduction of generic wines in 1984, when all firms that wanted to market, a post-patent expiration generic had to show the efficacy and safety of the drug through tests to the Food and Drug Administration. In the course of time, the Congress implemented the bailable substitution laws in an effort to encourage the use of generic drugs. In addition, the research shows that in 1996, information from IMS America Inc. showed that managed care payments such as confidential managed care as HMOS AND Medicaid HMOs amounted for over 505 of dollar revenues for pharmaceutical retail sales (Hellerstein, 109). The data sources used in the analysis involve information from a keep up of physicians, their patients, and drugs prescribed. In this case, physicians use patient by patient basis to test whether physicians prescribe generics to patients who are not covered by insurance and the effects of farming legislation on generic prescription (Hellerstein, 109). The main findings of the whole research show that physicians are important agents in prescription decisions. Therefore, identifying the sources of heterogeneity in sort across physicians is an integral factor of understanding how the markets for prescription drugs operate. Individuals learn how physicians behavior whenever they have different information and incentives in the areas of specialization. The new information learned from the article indicates that changes are still occurring among physicians through the continued growth of managed care due to increase in market share of generic drugs. At the same time, on that point probabilities that emphasis on cost containment in Health Maintenance Organizations may cause price differential between a trade name and generic drugs since there are existing negotiations with manufacturers on price discounts.