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Who Pays? The Incidence of High Malpractice Premiums

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Author Info
Mark Pauly (The Wharton School, University of Pennsylvania)
Christy Thompson (University of Minnesota)
Thomas Abbott (Medstat, Inc.)
James Margolis (Medical Group Management Association)
William Sage (University of Texas-Austin)
Abstract

This paper uses data from physician group practice to examine the relationship between malpractice premium levels and physician net incomes for the years 1994, 1998, and 2002, a period in which malpractice premiums rose rapidly. We find, as did work covering earlier periods of premium growth, that physician net incomes were not reduced by high or rising premiums, and that gross practice revenues were higher when premiums were higher. There is evidence that this forward shifting of costs was associated more with higher quantities of services than with higher unit fees.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1039&context=fhep
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Publisher Info
Article provided by Berkeley Electronic Press in its journal Forum for Health Economics & Policy.

Volume (Year): 9 (2006)
Issue (Month): 1 ()
Pages: 1039-1039
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Handle: RePEc:bep:fhecpo:v:9:y:2006:i:1:p:1039-1039

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Related research
Keywords: malpractice insurance incidence physician behavior

References listed on IDEAS
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  1. Danzon, Patricia M, 1991. "Liability for Medical Malpractice," Journal of Economic Perspectives, American Economic Association, vol. 5(3), pages 51-69, Summer. [Downloadable!] (restricted)
    Other versions:
  2. Daniel P. Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," NBER Working Papers 5466, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  3. Pauly Danzon. Patricia M. & Kington Mark V. & Raynard S., 1990. "The Effects of Malpractice Litigation on Physicians' Fees and Incomes," University of Chicago - George G. Stigler Center for Study of Economy and State 59, Chicago - Center for Study of Economy and State.
    Other versions:
  4. Thomas G. McGuire & Mark V. Pauly, 1991. "Physician Response to Fee Changes with Multiple Payers," Papers 0015, Boston University - Industry Studies Programme.
  5. Kessler, Daniel & McClellan, Mark, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, MIT Press, vol. 111(2), pages 353-90, May. [Downloadable!] (restricted)
  6. McGuire, Thomas G. & Pauly, Mark V., 1991. "Physician response to fee changes with multiple payers," Journal of Health Economics, Elsevier, vol. 10(4), pages 385-410. [Downloadable!] (restricted)
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This page was last updated on 2008-11-19.


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