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Operating on commission: Analyzing how physician financial incentives affect surgery rates

Posted Apr 09 2010 9:38am

My paper on how physician compensation affects surgery rates is being published in the May 2010 edition of Health Economics .  The abstract from the article is below:

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.

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