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Exploring Variations in Healthcare Expenditures - What is the Role of Practice Styles?

Alexander Ahammer and Thomas Schober

No 2018-04, CDL Aging, Health, Labor working papers from The Christian Doppler (CD) Laboratory Aging, Health, and the Labor Market, Johannes Kepler University Linz, Austria

Abstract: Variations in the use of medical resources, both across and within geographical regions, have been widely documented. In this paper we explore physician practice styles as a possible determinant of these variations. In particular, we exploit patient mobility between physicians to identify practice styles among general practitioners (GPs) in Austria. We use a large administrative data set containing detailed information on a battery of different healthcare services, and implement a model with additive patient and GP fixed effects that allows flexibly for systematic differences in patients’ health states. We find that, while GPs explain a relatively small part of the overall variation in medical expenses, heterogeneities in spending patterns among GPs are substantial. Conditional on patient characteristics, we document a difference of e 751.47 per patient per year in total medical expenses (which amounts to roughly 45% of the sample mean) between high- and low-spending GPs.

Keywords: I11; I12; C23. (search for similar items in EconPapers)
Pages: 21 pages
Date: 2018-05
Note: English
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Related works:
Journal Article: Exploring variations in health‐care expenditures—What is the role of practice styles? (2020) Downloads
Working Paper: Exploring Variations in Healthcare Expenditures – What is the Role of Practice Styles? (2017) Downloads
Working Paper: Exploring Variations in Healthcare Expenditures – What is the Role of Practice Styles? (2017) Downloads
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