2017
DOI: 10.1002/hec.3616
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Sorting into payment schemes and medical treatment: A laboratory experiment

Abstract: In this study, we introduce the opportunity for physicians to sort into capitation or fee-for-service payment. Using a controlled medically framed laboratory experiment with a sequential within-subject design allows isolating sorting from incentive effects. We observe a strong preference for fee-for-service payment, which does not depend on subjects' prior experience with one of the two payment schemes. Further, we identify a significant sorting effect.Subjects choosing capitation deviate ex ante less from pat… Show more

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Cited by 10 publications
(5 citation statements)
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References 38 publications
(53 reference statements)
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“…This result is consistent with the findings of Brosig‐Koch et al. (2017) and shows that changing the pricing format can be effective in improving patient treatment. However, although we provide some elements justifying the effectiveness of OPTAM, it should be kept in mind that opting in to OPTAM is not necessarily exogenous.…”
Section: Discussionsupporting
confidence: 92%
See 1 more Smart Citation
“…This result is consistent with the findings of Brosig‐Koch et al. (2017) and shows that changing the pricing format can be effective in improving patient treatment. However, although we provide some elements justifying the effectiveness of OPTAM, it should be kept in mind that opting in to OPTAM is not necessarily exogenous.…”
Section: Discussionsupporting
confidence: 92%
“…We show that the penalty for CMU-C and ACS is higher for unregulated physicians than regulated physicians and that signing OPTAM reduces it: OPTAM offsets 65% and 81% of the penalty that unregulated physicians apply to CMU-C and ACS patients, respectively. This result is consistent with the findings of Brosig-Koch et al (2017) and shows that changing the pricing format can be effective in improving patient treatment. However, although we provide some elements justifying the effectiveness of OPTAM, it should be kept in mind that opting in to OPTAM is not necessarily exogenous.…”
Section: Discussionsupporting
confidence: 91%
“…Theoretical and empirical evidence on the relationship between physician remuneration and quality of medical care suggests that capitation entails an incentive for underprovision, while fee‐for‐service can induce overprovision (see, e.g., Ding & Liu, 2021; Ellis & McGuire, 1986; Gaynor & Gertler, 1995; Gosden et al., 2000; Gravelle & Masiero, 2000; Patcharanarumol et al., 2018). Experimental research provides similar evidence (e.g., Brosig‐Koch et al., 2016, Brosig‐Koch, Hennig‐Schmidt, et al., 2017; Brosig‐Koch, Kairies‐Schwarz, et al., 2017; Di Guida et al., 2019; Green, 2014; Hennig‐Schmidt et al., 2011; Lagarde & Blaauw, 2017; Martinsson & Persson, 2019; Reif et al., 2020).…”
Section: Related Literaturementioning
confidence: 68%
“…What is the role, for example, of individuals' underlying social preferences, attitudes or personality traits? These individual characteristics might not only explain health care workers' responses to performance pay (e.g., Donato et al, 2017) but also self-selection into payment systems (e.g., Dohmen and Falk, 2011;Brosig-Koch et al, 2017b). Understanding the preferences that predict sorting are therefore of great importance for researchers and health care policy-makers alike.…”
Section: Discussionmentioning
confidence: 99%