The effect of physician remuneration on regional variation in hospital treatments

Rudy Douven (), Remco Mocking () and Ilaria Mosca ()

International Journal of Health Economics and Management, 2015, vol. 15, issue 2, 215-240

Abstract: We study medical practice variations for nine hospital treatments in the Netherlands. Our panel data estimations include various control factors and physician’s role to explain hospital treatments in about 3,000 Dutch zip code regions over the period 2006–2009. In particular, we exploit the physicians’ remuneration difference—fee-for-service (FFS) versus salary—to explain the effect of financial incentives on medical production. We find that utilization rates are higher in geographical areas where more patients are treated by physicians that are paid FFS. This effect is strong for supply sensitive treatments, such as cataracts and tonsillectomies, while we do not find an effect for non-supply sensitive treatments, such as hip fractures. Copyright The Author(s) 2015

Keywords: Medical practice variations; Financial incentives; Hospital treatments; Remuneration regulations; I110; I180 (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s10754-015-9164-2

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