Arbeitspapier
The Effects of Introducing Mixed Payment Systems for Physicians – Experimental Evidence
Mixed payment systems have become a prominent alternative to paying physicians through fee-for-service and capitation. While theory shows mixed payment systems to be superior, empirically, causal effects on physicians' behavior are not well understood when introducing mixed systems. We systematically analyze the influence of fee-for-service, capitation, and mixed payment systems on physicians' service provision. In a controlled laboratory setting, we implement an exogenous variation of the payment method. Participants, in the role of physicians, in the lab (N=213) choose quantities of medical services affecting patients' health outside the lab. Behavioral data reveal significant overprovision of medical services under fee-for-service and significant underprovision under capitation, though less than predicted when assuming profit-maximization. Introducing mixed payment systems significantly reduces deviations from patient-optimal treatment. Responses to incentive systems can be explained by a behavioral model capturing physician altruism. We find substantial heterogeneity in physician altruism. Our results hold for medical and non-medical students.
- ISBN
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978-3-86788-621-5
- Language
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Englisch
- Bibliographic citation
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Series: Ruhr Economic Papers ; No. 543
- Classification
-
Wirtschaft
Design of Experiments: Laboratory, Individual
Analysis of Health Care Markets
- Subject
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fee-for-service
capitation
mixed payment systems
physician altruism
laboratory experiment
- Event
-
Geistige Schöpfung
- (who)
-
Brosig-Koch, Jeannette
Hennig-Schmidt, Heike
Kairies-Schwarz, Nadja
Wiesen, Daniel
- Event
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Veröffentlichung
- (who)
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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
- (where)
-
Essen
- (when)
-
2015
- DOI
-
doi:10.4419/86788621
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Brosig-Koch, Jeannette
- Hennig-Schmidt, Heike
- Kairies-Schwarz, Nadja
- Wiesen, Daniel
- Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Time of origin
- 2015
Other Objects (12)
The Effects of Introducing Mixed Payment Systems for Physicians – Experimental Evidence
Physician altruism under the change from pure payment system to mixed payment schemes: experimental evidence
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
Effects of fee-for-service, diagnosis-related-group, and mixed payment systems on physicians’ medical service behavior: experimental evidence
Sorting into Physician Payment Schemes – A Laboratory Experiment
Sorting into Physician Payment Schemes – A Laboratory Experiment
The effect of internal salary incentives based on insurance payment on physicians’ behavior: experimental evidence
Physician ethics: undermined or enhanced by modes of payment?
A mixed duopoly in interbank payment services
Introducing Surgical and Experimental Pathology
How to Improve Patient Care? – An Analysis of Capitation, Fee-for-Service, and Mixed Payment Schemes for Physicians
The Effects of Introducing Mixed Payment Systems for Physicians – Experimental Evidence
Physician altruism under the change from pure payment system to mixed payment schemes: experimental evidence
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
Effects of fee-for-service, diagnosis-related-group, and mixed payment systems on physicians’ medical service behavior: experimental evidence
Sorting into Physician Payment Schemes – A Laboratory Experiment
Sorting into Physician Payment Schemes – A Laboratory Experiment
The effect of internal salary incentives based on insurance payment on physicians’ behavior: experimental evidence
Physician ethics: undermined or enhanced by modes of payment?
A mixed duopoly in interbank payment services
Introducing Surgical and Experimental Pathology
How to Improve Patient Care? – An Analysis of Capitation, Fee-for-Service, and Mixed Payment Schemes for Physicians
The Effects of Introducing Mixed Payment Systems for Physicians – Experimental Evidence
Physician altruism under the change from pure payment system to mixed payment schemes: experimental evidence
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
How Payment Systems Affect Physicians' Provision Behaviour – An Experimental Investigation
Effects of fee-for-service, diagnosis-related-group, and mixed payment systems on physicians’ medical service behavior: experimental evidence
Sorting into Physician Payment Schemes – A Laboratory Experiment
Sorting into Physician Payment Schemes – A Laboratory Experiment
The effect of internal salary incentives based on insurance payment on physicians’ behavior: experimental evidence
Physician ethics: undermined or enhanced by modes of payment?
A mixed duopoly in interbank payment services
Introducing Surgical and Experimental Pathology