Evaluating Health Policies: Impacts on Health Outcomes and Expenditures

Abstract

This research explores the implications of policy interventions on healthcare utilization, expenditures, and patient outcomes in Korea and the United States. The first study in- vestigates the impact of prescription drug withdrawals due to adverse reactions, revealing heterogeneous effects on patient health and drug costs. While adverse event incidences, such as stroke and heart failure, declined following withdrawals, overall medical service utilization remained stable, with notable shifts in pharmaceutical expenditures. The second study examines the effect of government-subsidized long-term care (LTC) services on healthcare spending and utilization in Korea. Using a regression discontinuity design, findings indicate that LTC subsidies significantly reduce hospital admissions and medical expenditures with- out worsening health outcomes. Both studies underscore how regulatory actions—whether through drug market interventions or LTC financing—reshape healthcare dynamics, influencing cost distribution and access while maintaining or improving patient well-being.