Unbiased Analysis of Today's Healthcare Issues
Many studies have attempted to determine how the manner in which physicians are compensated by health insurance companies affects the quantity of medical care provided. Today I will summarize some seminal studies in this field. Epstein, Begg and McNeil (NEJM 1986) In this study, the authors examine whether or not there is a difference in…
Many patients have an idealized view that physicians customize their treatments for each individual patient. For instance, do physicians tailor prescription dosage based on individual characteristics and responses over time, or will they simple prescribe the standard dosage? A paper by Frank and Zeckhuaser (JHE 2007) find that norm-following behavior (rather than patient-by-patient customization) is…
An Annals of Internal Medicine survey sheds some light on physicians opinions regarding universal health care. Overall 59% of physicians support national health insurance and 32% oppose it. Support for national health insurance increased 10 percentage points since 2002 (49%). Unsurprisingly, surgical subspecialties, anesthesiologists, and radiologists, were the only specialities where more than half of…
A recent article in the Journal of Health Economics found that increasing Medicare reimbursement may have no meaningful effect on hospital use or patient outcomes. “There is widespread concern about the quality of health care in the US, and the effect of provider payments on the quality of care is an important and unsettled issue…
David Williams of the Health Business Blog reviews an article from the Boston Globe (“Immigrants…“) stating that immigrants reduce the cost of health care. How can this be with so many immigrants relying on government programs and free clinics to receive their care? While it is true that immigrants are consumers of medical care, they…
The N.Y. Times (“…No Rhyme or Reason“) has an interesting essay about how doctors financial incentives pressure them to run too many tests on patients and refer them to too many specialists. Doctors are usually reimbursed for whatever they bill. As reimbursement rates have declined in recent years, most doctors have adapted by increasing the…
Diarrheal disease is a leading cause of childhood mortality in many developing countries. The best treatment when diarrhea strikes is to give the patient Oral Rehydration Solution (ORS). Who provides better care for this disease, public or private providers? A paper in Health Economics by Waters, Hatt and Black (2008) looks at data from the…
Doctors are often perceived as benevolent professionals. They are hard-working individuals who extend their largesse by giving away free medical care to those in need. Studies by Cunningham and May (2006) and the American Hospital Association find that doctors provide uncompensated care equal to 6.3% or 5.6% of their cots annually respectively. A recent Journal…
A paper by Alexander S. Preker and April Harding at the World Bank analyze the roles of the public and private sector in health care. One of the more interesting portions discusses medical care financing using some examples from ancient history. “Ideological views on the roles of the state and the private sector belong to…
Economists and health researchers have generally shown that when doctors are paid on a fee-for-service basis, they will advice the patient to undergo more medical procedures than when the doctor is paid on a capitation or salaried basis (see my own paper: “Operating on Commission“). Which payment method maximizes welfare has not been proven and…