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Happy Doctor Makes Happy Baby? Incentivizing Physicians Improves Quality of Prenatal Care

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  • Vibeke Myrup Jensen

    (Danish National Center for Social Research)

Abstract

Physician-induced demand, whereby physicians alter patient treatment for personal gain, lies at the heart of concerns about publicly provided health care. However, little is known about how payment systems affect the ultimate outcome of patient health. Exploiting a unique policy induced variation in Denmark, I investigate the impact of physician payment contracts on infant health. In a difference-in-differences framework, I find that firstborn infants exposed in the womb to the care of general practitioners with capitation contracts have poorer infant health outcomes than infants exposed to fee-for-service contracts. The firstborn children of younger women primarily drive the effects.

Suggested Citation

  • Vibeke Myrup Jensen, 2014. "Happy Doctor Makes Happy Baby? Incentivizing Physicians Improves Quality of Prenatal Care," The Review of Economics and Statistics, MIT Press, vol. 96(5), pages 838-848, December.
    • Handle: RePEc:tpr:restat:v:96:y:2014:i:5:p:838-848
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    Citations

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    Cited by:

    1. Véra Zabrodina & Mark Dusheiko & Karine Moschetti, 2020. "A moneymaking scan: Dual reimbursement systems and supplier‐induced demand for diagnostic imaging," Health Economics, John Wiley & Sons, Ltd., vol. 29(12), pages 1566-1585, December.
    2. Hope Corman & Dhaval Dave & Nancy E. Reichman, 2018. "Evolution of the Infant Health Production Function," Southern Economic Journal, John Wiley & Sons, vol. 85(1), pages 6-47, July.
    3. Sara Allin & Michael Baker & Maripier Isabelle & Mark Stabile, 2015. "Accounting for the Rise in C-sections: Evidence from Population Level Data," NBER Working Papers 21022, National Bureau of Economic Research, Inc.
    4. Carroll, Caitlin & Chernew, Michael & Fendrick, A. Mark & Thompson, Joe & Rose, Sherri, 2018. "Effects of episode-based payment on health care spending and utilization: Evidence from perinatal care in Arkansas," Journal of Health Economics, Elsevier, vol. 61(C), pages 47-62.
    5. Caitlin Carroll & Michael Chernew & A. Mark Fendrick & Joe Thompson & Sherri Rose, 2017. "Effects of Episode-Based Payment on Health Care Spending and Utilization: Evidence from Perinatal Care in Arkansas," NBER Working Papers 23926, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    health care; prenatal care; child care;
    All these keywords.

    JEL classification:

    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J13 - Labor and Demographic Economics - - Demographic Economics - - - Fertility; Family Planning; Child Care; Children; Youth

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