Physician Behavior under Prospective Payment Schemes—Evidence from Artefactual Field and Lab Experiments

Recent experimental studies analyze the behavior of physicians towards patients and find that physicians care for their own profit as well as patient benefit. In this paper, we extend the experimental analysis of the physician decision problem by adding a third party which represents the health insu...

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Published inInternational journal of environmental research and public health Vol. 17; no. 15; p. 5540
Main Authors Reif, Simon, Hafner, Lucas, Seebauer, Michael
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 31.07.2020
MDPI
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ISSN1660-4601
1661-7827
1660-4601
DOI10.3390/ijerph17155540

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Summary:Recent experimental studies analyze the behavior of physicians towards patients and find that physicians care for their own profit as well as patient benefit. In this paper, we extend the experimental analysis of the physician decision problem by adding a third party which represents the health insurance that finances medical service provision under a prospective payment scheme. Our results show that physicians take into account the payoffs of the third party, which can lead to underprovision of medical care. We conduct a laboratory experiment in neutral as well as in medical framing using students and medical doctors as subjects. Subjects in the medically framed experiments behave weakly and are more patient orientated in contrast to neutral framing. A sample of medical doctors exhibits comparable behavior to students with medical framing.
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ISSN:1660-4601
1661-7827
1660-4601
DOI:10.3390/ijerph17155540