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Research Article
Operating on commission: analyzing how physician financial incentives affect surgery rates
Article first published online: 27 APR 2009
DOI: 10.1002/hec.1495
Copyright © 2009 John Wiley & Sons, Ltd.
1099-1050/asset/cover.gif?v=1&s=af8abe1b1dd6990bc2f6af06e451153b7d74332a "Health Economics")
Additional Information
How to Cite
Shafrin, J. (2010), Operating on commission: analyzing how physician financial incentives affect surgery rates. Health Economics, 19: 562–580. doi: 10.1002/hec.1495
Publication History
- Issue published online: 8 APR 2010
- Article first published online: 27 APR 2009
- Manuscript Accepted: 16 MAR 2009
- Manuscript Revised: 25 JAN 2009
- Manuscript Received: 23 AUG 2007
- Abstract
- References
- Cited By
Keywords:
- physician compensation;
- surgery rates;
- adverse selection
Abstract
This paper employs a nationally representative, household-based dataset in order to test how the compensation method of both the specialists and the primary care providers affects surgery rates. After controlling for adverse selection, I find that when specialists are paid through a fee-for-system scheme rather than on a capitation basis, surgery rates increase 78%. The impact of primary care physician compensation on surgery rates depends on whether or not referral restrictions are present. Copyright © 2009 John Wiley & Sons, Ltd.