Sorting into Physician Payment Schemes A Laboratory Experiment

Abstract

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Physician behavior and conditional altruism: the effects of payment system and uncertain health benefit

“…One of the key benefits of using a lab experiment is that there exists a theoretically known and unique optimal quantity of medical care that maximizes the health benefit in each patient, and furthermore that it facilitates ceteris paribus variation in physician payment systems in a controlled environment. A robust finding in this experimental literature is that physicians provide more medical care under fee-for-service than under capitation, to the extent that patients are overtreated in fee-for-service and undertreated in capitation (Hennig-Schmidt et al 2011;Brosig-Koch et al 2013;Keser et al 2014;Hennig-Schmidt and Wiesen 2014;Brosig-Koch et al 2015. Moreover, Brosig-Koch et al 2013and Brosig-Koch et al (2015 investigate whether physicians provide better medical treatment under capitation or fee-for-service, and capitation seems to be the marginally better system in this respect.…”

“…A robust finding in this experimental literature is that physicians provide more medical care under fee-for-service than under capitation, to the extent that patients are overtreated in fee-for-service and undertreated in capitation (Hennig-Schmidt et al 2011;Brosig-Koch et al 2013;Keser et al 2014;Hennig-Schmidt and Wiesen 2014;Brosig-Koch et al 2015. Moreover, Brosig-Koch et al 2013and Brosig-Koch et al (2015 investigate whether physicians provide better medical treatment under capitation or fee-for-service, and capitation seems to be the marginally better system in this respect. Using the data in Hennig-Schmidt et al (2011), Godager and Wiesen (2013) estimate the relative weight attached to own income and altruism.…”