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Using artefactual field and lab experiments to investigate how fee-for-service and capitation affect medical service provision

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  • Brosig-Koch, Jeannette
  • Hennig-Schmidt, Heike
  • Kairies-Schwarz, Nadja
  • Wiesen, Daniel

Abstract

We analyze how physicians, medical students, and non-medical students respond to financial incentives from fee-for-service and capitation. We employ a series of artefactual field and conventional lab experiments framed in a physician decision-making context. Physicians, participating in the field, and medical and non-medical students, participating in lab experiments, respond to the incentives in a consistent way: Significantly more medical services are provided under fee-for-service compared to capitation. The intensity by which subjects respond to incentives, however, differs by subject pool. Our findings are robust regarding subjects’ gender, age, and personality traits.

Suggested Citation

  • Brosig-Koch, Jeannette & Hennig-Schmidt, Heike & Kairies-Schwarz, Nadja & Wiesen, Daniel, 2016. "Using artefactual field and lab experiments to investigate how fee-for-service and capitation affect medical service provision," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 17-23.
  • Handle: RePEc:eee:jeborg:v:131:y:2016:i:pb:p:17-23
    DOI: 10.1016/j.jebo.2015.04.011
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    References listed on IDEAS

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    Cited by:

    1. repec:eee:jeborg:v:142:y:2017:i:c:p:396-403 is not listed on IDEAS
    2. Lagarde, Mylène & Blaauw, Duane, 2017. "Physicians’ responses to financial and social incentives: A medically framed real effort experiment," Social Science & Medicine, Elsevier, vol. 179(C), pages 147-159.
    3. repec:eee:jeborg:v:137:y:2017:i:c:p:374-397 is not listed on IDEAS
    4. Bejarano, Hernán & Green, Ellen P. & Rassenti, Stephen, 2017. "Payment scheme self-selection in the credence goods market: An experimental study," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 396-403.
    5. Himmel, Konrad & Schneider, Udo, 2017. "Ambulatory care at the end of a billing period," hche Research Papers 2017/14, University of Hamburg, Hamburg Center for Health Economics (hche).
    6. Castro, M.F.; & Ferrara, P.; & Guccio, C.; & Lisi, D.;, 2018. "Medical Malpractice Liability and Physicians’ Behavior:Experimental Evidence," Health, Econometrics and Data Group (HEDG) Working Papers 18/11, HEDG, c/o Department of Economics, University of York.
    7. Van Gestel, R.; Müller, T.; Bosmans, J.;, 2017. "Learning from failure in healthcare: dynamic panel evidence of a physician shock effect," Health, Econometrics and Data Group (HEDG) Working Papers 17/24, HEDG, c/o Department of Economics, University of York.

    More about this item

    Keywords

    Artefactual field experiment; Laboratory experiment; Fee-for-service; Capitation; Physician behavior;

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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