How Do Doctors Respond to Incentives? Unintended Consequences of Paying Doctors to Reduce Costs

How do Doctors Respond to Incentives? Unintended Consequences of Paying Doctors to Reduce Costs

In an effort to find effective strategies for reducing healthcare costs, the Affordable Care Act has spent billions of dollars on pilot programs. In this paper, I study a Medicare pilot program in New Jersey where hospitals paid doctors bonuses for reducing the total costs of a given admission (a “bundled payment”). I identify the effects of the bonus by comparing the behavior of a given doctor...

Do medical doctors respond to economic incentives?

A longitudinal analysis of married physicians labor supply is carried out on Norwegian data from 1997 to 1999. The model utilized for estimation implies that physicians can choose among 10 different job packages which are a combination of part time/full time, hospital/primary care, private/public sector, and not working. Their current choice is influenced by past available options due to a habi...

Do Financial Incentives Increase Doctors’ Willingness to Publish Research? – A Pilot Study of 21 Junior Doctors

Do doctors respond to financial incentives? UK family doctors and the GP fundholder scheme

The 1991 reforms to the UK NHS created a group of buyers of hospital care from amongst primary care physicians. The implementation of the reforms was such that these buyers had incentives to increase their use of hospital services prior to entering the scheme in order to inflate their budgets. It has been argued that non-financial motives would limit such behaviour. The paper shows that these h...

Do doctors respond to financial incentives? UK family doctors and the GP fundholder scheme

The 1991 reforms to the UK NHS created a group of buyers of hospital care from amongst primary care physicians. The implementation of the reforms was such that these buyers had incentives to increase their use of hospital services prior to entering the scheme in order to inflate their budgets. It has been argued that non-financial motives would limit such behaviour. The paper shows that these h...