Who Pays? The Incidence of High Malpractice Premiums

Pauly Mark (), Thompson Christy (), Abbott Thomas (), Margolis James () and Sage William ()
Additional contact information
Pauly Mark: The Wharton School, University of Pennsylvania
Thompson Christy: University of Minnesota
Abbott Thomas: Medstat, Inc.
Margolis James: Medical Group Management Association
Sage William: University of Texas-Austin

Forum for Health Economics & Policy, 2006, vol. 9, issue 1, 19

Abstract: This paper uses data from physician group practice to examine the relationship between malpractice premium levels and physician net incomes for the years 1994, 1998, and 2002, a period in which malpractice premiums rose rapidly. We find, as did work covering earlier periods of premium growth, that physician net incomes were not reduced by high or rising premiums, and that gross practice revenues were higher when premiums were higher. There is evidence that this forward shifting of costs was associated more with higher quantities of services than with higher unit fees.

Keywords: malpractice insurance; incidence; physician behavior (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (2)

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DOI: 10.2202/1558-9544.1039

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