Physicians Treating Physicians: Information and Incentives in Childbirth

Erin M. Johnson and M. Rehavi

American Economic Journal: Economic Policy, 2016, vol. 8, issue 1, 115-41

Abstract: This paper provides new evidence on the interaction between patient information and physician financial incentives. Using rich microdata on childbirth, we compare the treatment of physicians when they are patients with that of comparable nonphysicians. We also exploit the presence of HMO-owned hospitals to determine how the treatment gap varies with providers' financial incentives. Consistent with induced demand, physicians are approximately 10 percent less likely to receive a C-section, with only a quarter of this effect attributable to differential sorting. While financial incentives affect the treatment of nonphysicians, physician-patients are largely unaffected. Physicians also have better health outcomes. (JEL D83, I11, J16, J44)

JEL-codes: D83 I11 J16 J44 (search for similar items in EconPapers)
Date: 2016
Note: DOI: 10.1257/pol.20140160
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Citations: View citations in EconPapers (84)

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Working Paper: Physicians Treating Physicians: Information and Incentives in Childbirth (2013)
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