Full Citation

Title: Do Physicians' Financial Incentives Affect Medical Treatment and Patient Health?

Citation Type: Journal Article

Publication Year: 2014

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Abstract: We investigate whether physicians' financial incentives influence health care supply, technology diffusion, and resulting patient outcomes. In 1997, Medicare consolidated the geographic regions across which it adjusts physician payments, generating area-specific price shocks. Areas with higher payment shocks experience significant increases in healthcare supply. On average, a 2 percent increase in payment rates leads to a 3 percent increase in care provision. Elective procedures such as cataract surgery respond much more strongly than less discretionary services. Non-radiologists expand their provision of MRIs, suggesting effects on technology adoption. We estimate economically small health impacts, albeit with limited precision.

Url: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4144420/pdf/nihms586155.pdf

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Authors: Clemens, Jeffrey; Gottlieb, Joshua D.

Periodical (Full): American Economic Review

Issue: 4

Volume: 104

Pages: 1320-1349

Data Collections: IPUMS USA

Topics: Health, Other

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