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Local Competition and Physicians’ Pricing Decisions: New Evidence from France

Author

Listed:
  • Benjamin Montmartin

    (Université Côte d'Azur, France
    GREDEG CNRS)

  • Mathieu Escot

    (UFC Que Choisir)

Abstract

More than 40% of French specialist practitioners are able to balance bill their patients. We examine the determinants of their choice to switch or not to an optional system of self-limitation of fees in exchange for subsidies, and the role in particular of local competition. We use a logit model with data on 5568 gynecologists, ophthalmologists and pediatricians, in years 2012 and 2016. We find that their decision is guided primarily by their characteristics such as their initial price or type of practice, and the share of patients that they can balance bill. The local competitive environment does not have a significant impact on the pricing decisions of private physicians. Therefore, governments that want to limit balance billing need to apply a mandatory ceiling rather than introducing an optional system.

Suggested Citation

  • Benjamin Montmartin & Mathieu Escot, 2017. "Local Competition and Physicians’ Pricing Decisions: New Evidence from France," GREDEG Working Papers 2017-31, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  • Handle: RePEc:gre:wpaper:2017-31
    as

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    File URL: http://www.gredeg.cnrs.fr/working-papers/GREDEG-WP-2017-31.pdf
    File Function: First version, 2017
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Balance billing; Health care access; fee regimes; Fee-for-services; Local and Price competition;

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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