Patients whose GP knows complementary medicine tend to havelower costs and live longer
Received: 15 November 2010 / Accepted: 27 May 2011 / Published online: 22 June 2011Ó The Author(s) 2011. This article is published with open access at Springerlink.com
and longer lives are unlikely to be related to differences in
complementary and alternative medicine (CAM) as an area
selection (e.g. people with a low taste for medical inter-
of research, although both clinical experiences and several
ventions might be more likely to choose CAM) and better
empirical studies suggest cost-effectiveness of CAM.
practices (e.g. less overtreatment, more focus on preventive
and curative health promotion) by GPs with knowledge of
compared with conventional medicine.
complementary medicine. More controlled studies (repli-
A dataset from a Dutch health insurer was used
cation studies, research based on more comprehensive data,
containing quarterly information on healthcare costs (care
cost-effectiveness studies on CAM for specific diagnostic
by general practitioner (GP), hospital care, pharmaceutical
care, and paramedic care), dates of birth and death, genderand 6-digit postcode of all approximately 150,000 insurees,
for the years 2006–2009. Data from 1913 conventional GPs
were compared with data from 79 GPs with additionalCAM training in acupuncture (25), homeopathy (28), and
anthroposophic medicine (26). Results
Patients whose GP has additional CAM training
have 0–30% lower healthcare costs and mortality rates,
depending on age groups and type of CAM. The lower costsresult from fewer hospital stays and fewer prescription drugs.
Complementary and alternative medicine (CAM) has been
largely ignored by health economists as an area of research.
controlling for confounders including neighborhood spe-
That fact is possibly related to the low esteem of CAM in
cific fixed effects at a highly detailed level, the lower costs
Defining CAM is difficult, because the field is very
broad and constantly changing. According to the NationalCenter for Complementary and Alternative Medicine
P. Kooreman (&)Department of Economics, Tilburg University,
(NCCAM), CAM is a group of diverse medical and
Warandelaan 2, 5037 AB Tilburg, The Netherlands
healthcare systems, practices, and products that are not
generally considered part of conventional medicine The Cochrane Collaboration definition of complementary
E. W. BaarsDepartment of Care, University of Applied Sciences,
medicine is that it includes all such practices and ideas that
Zernikedreef 11, 2333 CK Leiden, The Netherlands
are outside the domain of conventional medicine in severalcountries and defined by its users as preventing or treating
illness, or promoting health and well-being. These prac-
Department of Healthcare and Nutrition, Louis Bolk Institute,Hoofdstraat 24, 3972 LA Driebergen, The Netherlands
tices complement mainstream medicine by satisfying a
demand not met by conventional practices and diversifying
Anthroposophic medicine, acupuncture, and homeopa-
the conceptual framework of medicine [].
thy are three main streams of CAM. One of the core fea-
Patients around the globe are increasingly embracing
tures of CAM is its orientation on preventative and curative
CAM as a contributor to health. A recent study by the US
health promotion as an additional approach to a more
National Institute of Health shows that 4 out of 10 Amer-
conventional fighting disease approach. Anthroposophic
icans used some form of CAM in 2007. Another study on
medicine is an integrative diagnosis and therapy concept,
Switzerland reported that almost 11% of the population had
developed from 1921 onwards and practiced today in over
used one of five CAM streams (anthroposophic medicine,
60 countries. It combines mainstream scientific medicine
homeopathy, neural therapy, phytotherapy, and Traditional
with Rudolf Steiner’s anthroposophy. Anthroposophic
Chinese Medicine) in 2002. The CAM doctors in that study
medicine considers a human being as a whole entity—
treated patients that tended to be younger, female, and
body, mind, soul, and individuality. It aims to stimulate the
better educated. These patients also tended to have a
self-healing forces of the body, restoring the balance of
favorable attitude toward complementary medicine and to
bodily functions, and strengthening the immune system,
exhibit chronic and more severe forms of disease. The
rather than primarily relieve the symptoms of disease.
majority of alternative medicine users appear to have
Specific anthroposophic approaches include anthropo-
chosen CAM mainly because they wish to undergo a cer-
sophic medicinal products, massage therapy, art and music
tain procedure; additional reasons include desire for more
therapy, and speech and movement therapies [
comprehensive treatment and expectation of fewer side
Homeopathy is a form of alternative medicine, first
effects In a referendum in Switzerland in 2009, two-
proposed by the German physician Samuel Hahnemann in
thirds of the voters were in favor of a wider coverage of
1796, that attempts to treat patients with heavily diluted
CAM by public health insurance. In January 2011, based
substances. These substances that cause certain symptoms
on the positive outcome of a national referendum, the
in healthy individuals are given as the treatment for
Swiss authorities decided that five main streams of CAM
patients exhibiting similar symptoms. The appropriate
(anthroposophic medicine, homeopathy, neural therapy,
homeopathic medicinal product aims to stimulate the
phytotherapy, and Traditional Chinese Medicine) will be
body’s inherent forces of self-recovery ].
covered by the mandatory health insurance for a period of
Acupuncture is one of the main forms of treatment in
Traditional Chinese Medicine (TCM). It involves the use of
In many cases, the effectiveness of CAM has not been
sharp, thin needles that are inserted in the body at very
proven in clinical trials However, lack of proof of
specific points. This process is believed to adjust and alter
effectiveness is obviously not the same as proof of inef-
the body’s energy flow into healthier patterns and is used to
fectiveness. Clearly, the status of a treatment can change
treat a wide variety of illnesses and health conditions [
from CAM into conventional medicine once scientific
In their review, Herman et al. ] report that some
evidence on effectiveness becomes available. Two exam-
studies indicate that CAM therapies may be considered
ples of CAM treatments that have become (more) accepted
cost-effective compared with usual care for various con-
by conventional medicine are St. John’s wort and acu-
ditions: acupuncture for migraine, manual therapy for neck
puncture for specific indications. St. John’s wort, for more
pain, spa therapy for Parkinson’s, self-administered stress
than 90 years used in anthroposophic medicine, has
management for cancer patients undergoing chemotherapy,
become part of the conventional guidelines for the treat-
preoperative and postoperative oral nutritional supple-
ment of depression, based on scientific evidence from
mentation for lower gastrointestinal tract surgery, bio-
randomized controlled trials Hopton and McPherson
feedback for patients with ‘functional’ disorders (e.g.,
[] conclude on the basis of a systematic review of pooled
irritable bowel syndrome), and guided imagery, relaxation
data from meta-analyses that acupuncture is more than a
therapy, and potassium-rich diet for cardiac patients. A
placebo for commonly occurring chronic pain conditions.
systematic review of randomized clinical trials on the use
In addition, in her thesis, van den Berg recently dem-
of so-called natural health products shows evidence of
onstrated positive effects of acupuncture on obstetric health
cost-effectiveness in relation to postoperative surgery but
problems (breech presentation). Also, Servan-Schreiber
not with respect to the other conditions assessed [
presents a series of recent examples of the transition from
Studer and Busato [demonstrated that general practi-
CAM to conventional medicine in depression treatment.
tioners who have completed certified additional training in
Some of the methods described by Servan-Schreiber have
CAM after obtaining their conventional medical degree
been practiced for centuries, cannot be patented, and are
(GP-CAMs) (n = 257) compared with general practitio-
available at low costs. These findings underscore the fact
ners who have not (GPs) (n = 174) have equal costs per
that methods that are considered CAM today could be
patient per year, but significantly lower costs per doctor
effective and have a large cost-saving potential.
(29%) per year, although GP-CAMs take more time per
patient. A NCCAM study in 2007 demonstrated that CAM
analyses. Azivo is a former Ziekenfonds (sick fund) foun-
costs were 11.2% of total out-of-pocket expenditures on
ded in 1895. It merged with health insurer Menzis in 2008
but keeps operating as ‘‘Azivo’’ in the Hague region. Its
GP care varies between European countries in terms of
share in the market for basic and supplementary health
structure, working methods, and responsibilities. In the
insurance in this region is about one quarter.
Netherlands, GPs are the central gatekeepers for reference
The dataset contains quarterly information on the
to the rest of healthcare, like specialists and paramedics.
healthcare costs of all Azivo insurees for the years 2006 up
Dutch general practitioners generally receive a quarterly
to 2009. In addition, it contains the date of birth of the
fixed fee per patient plus a fee-for-service per consultation
insuree, date of death (if applicable), gender, and 6-digit
and per drug prescription. There is no difference between
postcode of the insuree’s residence. For each insuree-
the financial incentives faced by GPs and GP-CAMs. In the
quarter combination, information on the costs of four dif-
Netherlands, purchasing basic health insurance is manda-
ferent types of care is available: care by GP, hospital care,
tory for all citizens. In addition, citizens are free to pur-
pharmaceutical care, and paramedic care (like physical
therapy). The dataset does not contain information on the
Since there is a lack of cost-effectiveness data of CAM
supplementary insurance status of insures; the cost infor-
in the Netherlands, in this paper, we compare the perfor-
mation is the sum of expenses covered by both the basic
mance of general practitioners who have completed certi-
and (if applicable) supplementary health insurance.
fied additional training in CAM after obtaining theirconventional medical degree (GP-CAMs) with general
practitioners who have not (GPs). More specifically, weconsider GP-CAMs with additional training in anthropo-
The dataset also contains the names and addresses of the
sophic medicine, homeopathy, or acupuncture (about 1%
general practitioners who have patients who are insured by
of GPs for each of these CAM types).
Azivo, which allows us to distinguish between conven-tional GPs and GP-CAMs. We defined a general practi-tioner as anthroposophic GP-CAM if his or her name
appears in the list of general practitioners with additionaltraining in anthroposophic medicine as provided by their
professional association [GP-CAMs with homeopathy] and GP-CAMs with acupuncture [are defined
We analyze costs at the patient level using linear and log-
linear regression analysis. While the linear specification ismore common, the log-linear specification can be argued to
be more appropriate given that costs are nonnegative andcost distributions typically have long tails. Given the large
Significance of coefficients is tested using t tests, with
average differences in health and healthcare needs across
clustering of standard errors at the level of the insuree.
age groups, the cost analysis has been performed separately
Calculations were made using StataSE 10.0.
for the age groups 0–24, 25–49, 50–74, and 75?. In all costregressions, the explanatory variables are gender, age(linear, within each age category), dummies for each
quarter, dummies for anthroposophy, homeopathy, andacupuncture, and 6-digit postal code fixed effects.
Effects on mortality rates are analyzed using a Logit
model with fixed effects at the 4-digit insuree postcode level.
The dataset contained information on 151,952 insurees
Given the relatively low proportion of deaths (less than 3% of
with a mean age of 38.4 (SD = 22.6); 53% are women.
insurees died during our sampling period), fixed effects at
These patients live in 21,902 different 6-digit postal codes.
6-digit insuree level are infeasible. To check for robustnessagainst functional form specification, we also analyze mor-
tality using fixed effects linear probability models.
The dataset contained information from 1992 GPs: 1913
Dataset on healthcare costs and demographics
conventional GPs and 79 complementary GPs (GP-CAM)(anthroposophy: 26, homeopathy: 28, acupuncture: 25).
A dataset from health insurer Azivo, active primarily in the
The number of patients insured with Azivo is highly
city of Hague and its wider vicinity, was used for the
unevenly distributed across GPs. For example, 5 out the 26
anthroposophic GPs in the dataset account for more than
large for patients aged 75 and above with an anthropo-
95% of the claims by patients with anthroposophic GP.
sophic GP-CAM (1,000 Euros on an annual basis)
This is because Azivo has a relatively large market share
(about one quarter) in the Hague region and a very low
The analyses also demonstrate large demographic dif-
market share in most other regions. The average number of
ferences between patients with a conventional GP versus
Azivo patients with these 5 anthroposophic GPs is about
patients with GP-CAMs (Table ). GP-CAMs have a larger
570. The corresponding figures for the other GP types are
fraction of female patients than conventional GPs and
850 (conventional), 150 (homeopathy), and 360 (acu-
fewer patients from disadvantaged neighborhoods. Clearly,
puncture). The differences can be due to variations in the
the cost differences reported in Tables and are partly
size of the total practice as well as in variations in Azivo’s
due to differences in the demographic composition of the
market share across the four groups of patients.
various groups of patients and therefore difficult tointerpret.
After controlling for these demographic differences by
means of regression analyses, we find that for patients in
The costs of patients with a GP-CAM are 7% lower
the age group 25–49 with a GP-CAM with acupuncture,
compared with conventional GPs, which amounts to
total costs are 66 Euro lower per quarter (Table left
140 Euros per patient annually. However, this difference in
panel). Secondly, for patients aged 75 and above with an
raw means of total costs is significant only for anthropo-
anthroposophic GP-CAM, total costs are about 400 Euros
sophic GP-CAMs. The lower total costs result from lower
lower per quarter. The magnitude of this difference is large,
hospital and pharmaceutical costs. Patients with a GP-
about one-third lower. The separate regressions for the
CAM have slightly higher costs for paramedic care, but this
costs components show that these lower costs come from
difference is small. When the costs are compared by age
lower hospital and lower pharmaceutical costs. The results
group, in absolute terms, the differences are particularly
for the log-linear specification show a somewhat different
Table 1 Descriptive statistics on patients with GPs and GP-CAMs
Incidence of costs of healthcare (0/1) (per quarter)
***, **, * indicate a statistically significant difference with conventional GP at the 1, 5, and 10% level, respectivelya Costs of healthcare are in Euros per quarterb Based on a government list of most disadvantaged neighborhoods in the Netherlands (‘‘Vogelaar-wijken’’). These neighborhoods are uniquelyidentified by their 4-digit postal code
Table 2 Costs of healthcare; by type of GP and insuree age category
***, **, * indicate a statistically significant difference with conventional GP at the 1, 5, and 10% level, respectivelya Costs of healthcare are in Euros per quarter
pattern. Homeopathic GP-CAMs have about 15% lower
we find that patients with a GP-CAM have significantly
costs in all three age categories below age 75. The lower
lower mortality rates (Table ). For all three types of
costs for patients aged 25–49 who have a GP-CAM with
CAM, the effect is significant for some specifications, but
not for all specifications. The magnitude of the effect again
It is important to note that 6-digit postal codes in the
Netherlands are highly detailed, representing 16 house-holds on average. Within such a code, households are
highly homogeneous in terms of socioeconomic status. Given that we have controlled for 6-digit postal codes in
There are four types of explanations for the differences
the regressions, the results are unlikely to be due to dif-
reported in the previous section. First, the differences could
be due to selection on unobservables in patients’ GPchoice. For example, patients who are healthier and more
health-conscious or patients with a strong preference tominimize exposure to medical interventions might be more
In the present dataset, the only information available on
likely to choose a GP-CAM. In both cases, costs will be
health outcomes is mortality in the years 2006 up to and
lower due to lower demand for healthcare. A standard
including 2009. For the population of insurees in our data,
approach to control for selection on unobservables is to use
the mortality rate was approximately 3%. After controlling
instrumental variables. A potential instrumental variable
for demographics (including age) and 4-digit postal codes,
(IV) in this case is the distance between a patient’s home
Table 3 Effects of complementary care on costs per insuree age category
***, **, * indicate a statistically significant difference with conventional GP at the 1, 5, and 10% level, respectivelya Costs of healthcare are in Euros per quarter. Each row is based on two regressions with either costs (left panel) or the natural logarithm of costs(right panel) as the dependent variable. Explanatory variables are gender, age (linear, within each age category), dummies for each quarter,dummies for anthroposophy, homeopathy, and acupuncture; the table reports the coefficients on the latter dummies. All regressions control for6-digit insuree postcode fixed effects; standard errors clustered at the insuree level
and the various GPs. However, the distance measures
same time, these patients report fewer adverse side effects
would be perfectly correlated with the 6-digit postal code
of treatments and higher patient satisfaction (e.g., [
dummies. As a consequence, this IV would only work if we
These findings combined with the results in this study
would control for less detailed neighborhood information,
provide some indication that undertreatment by GP-CAMs
like 4-digit postal codes. However, since socioeconomic
is unlikely. Firmer conclusions require more data on
differences within a 4-digit postal code are typically large,
this would not be a credible approach for identifying a
Thirdly, the results could be due to better practices of
CAM due to a stronger focus on preventive and curative
Second, the results could be due to undertreatment by
health promotion and less overtreatment. For example, a
GP-CAMs. In the present dataset, we were only able to
GP-CAM might try a low-cost CAM treatment first. As
analyze mortality and found that patients with a GP-CAM
mentioned, the primary professional orientation of CAM
tend to have lower mortality rates. A number of studies
doctors is to strengthen the self-healing capacity of the
have reported that patients seeking anthroposophic or
body and the self-management of the patient. This
homeopathic care have longer lasting and more severe
approach is associated with prescribing fewer conventional
health problems than patients in conventional care. At the
pharmaceuticals, tests, and operations.
Table 4 Effects of complementary care on mortality
Dependent variable: death in 2006, 2007, 2008, or 2009
The table is based on models with the following explanatory variables: gender, age, dummies for anthroposophy, homeopathy, and acupuncture(dummy for complementary in the last column); the table reports the coefficients on the latter dummies
LPM regression controls for 4-digit insuree postcode fixed effects
***, **, * indicate a statistical significance at the 1, 5, and 10% level, respectively
Fourthly, the lower costs could be related to the fact that
effectiveness. Missing information includes costs distin-
patients interested in CAM might have higher out-of-
guished by basic and supplementary insurance, out-of-
pocket expenses since CAM is not included in the basic
pocket expenses, morbidity, work absence, subjective
health insurance package. On the other hand, patients
interested in CAM are more likely to buy supplementary
Consequently, a large number of issues remain for future
insurance that covers CAM. This would imply that the
research. We mention three of them specifically. First,
marginal out-of-pocket expenses for these insurees are
replication studies based on similar datasets are needed to
lower than for insurees with a conventional GP, leading to
confirm the present results. Secondly, further research is
more consumption of healthcare (recall that the Azivo data
needed to determine to what extent selection on unob-
contain costs covered by basic health insurance plus costs
servables and causal effects explain the lower costs and
covered by optional supplementary health insurance). Yet,
lower mortality rates of patients with a GP-CAM. Thirdly,
we find that the costs of patients with a GP-CAM are lower.
more research is needed with regard to the cost-effective-
Clarifying the role of out-of-pocket expenses is an empir-
ness of CAM for specific diagnostic categories.
ical issue that requires additional data.
Several studies that compare the health status of patients
We thank health insurance company Azivo, for
providing the data, and Paul de Beer, Katie Carman, Patrick Hullegie,
treated in CAM and in conventional medicine in primary
Tiemen Woutersen, as well as three anonymous referees for helpful
care settings find that patients treated in CAM practices
suffer more often from severe and chronic illnesses (e.g.,[This suggests that if we could control for severity
This article is distributed under the terms of the
Creative Commons Attribution Noncommercial License which per-
and chronicity of illnesses (with additional data), the esti-
mits any noncommercial use, distribution, and reproduction in any
mated cost differences might be larger.
medium, provided the original author(s) and source are credited.
Another result of this study is that GP-CAMs have a
larger fraction of female patients than conventional GPsand fewer patients from disadvantaged neighborhoods.
Similar findings have been reported for the US [and forSwitzerland ].
The major limitations of this study concern the limited
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