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Profit or Patients' Health Benefit? Exploring the Heterogeneity in Physician Altruism

  • Godager, Geir

    ()

    (Department of Health Management and Health Economics)

  • Wiesen, Daniel

    ()

    (BonnEconLab, Laboratory for Experimental Economics, University of Bonn and Chair of Quantitative)

This paper investigates physician altruism toward patients’ health benefit using behavioral data from the fully incentivized laboratory experiment of Hennig-Schmidt et al. (2011). This setup identifies both physicians’ profits and patients’ health benefit resulting from medical treatment decisions. We estimate a random utility model applying multinomial logit regression, finding that physicians attach a positive weight on patients’ health benefit. Furthermore, physicians vary substantially in their degree of altruism. Finally, we provide some implications for the design of physician payment schemes.

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File URL: http://www.med.uio.no/helsam/forskning/nettverk/hero/publikasjoner/skriftserie/2011/2011_7.pdf
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Paper provided by Oslo University, Health Economics Research Programme in its series HERO On line Working Paper Series with number 2011:7.

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Length: 18 pages
Date of creation: 28 Dec 2011
Date of revision:
Handle: RePEc:hhs:oslohe:2011_007
Contact details of provider: Postal: HERO / Institute of Health Management and Health Economics P.O. Box 1089 Blindern, N-0317 Oslo, Norway
Phone: 2307 5309
Fax: 2307 5310
Web page: http://www.hero.uio.no/eng.html
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  7. Philippe CHONÉ & Ching-to Albert MA, 2011. "Optimal Health Care Contract under Physician Agency," Annales d'Economie et de Statistique, ENSAE, issue 101-102, pages 229-256.
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  9. Chalkley, Martin & Malcomson, James M., 1998. "Contracting for health services when patient demand does not reflect quality," Journal of Health Economics, Elsevier, vol. 17(1), pages 1-19, January.
  10. Allard, Marie & Jelovac, Izabela & Léger, Pierre Thomas, 2011. "Treatment and referral decisions under different physician payment mechanisms," Journal of Health Economics, Elsevier, vol. 30(5), pages 880-893.
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  19. Godager, Geir & Iversen, Tor & Hennig-Schmidt, Heike, 2013. "Does performance disclosure influence physicians’ medical decisions? An experimental analysis," HERO On line Working Paper Series 2013:1, Oslo University, Health Economics Research Programme.
  20. Scott, Anthony, 2001. "Eliciting GPs' preferences for pecuniary and non-pecuniary job characteristics," Journal of Health Economics, Elsevier, vol. 20(3), pages 329-347, May.
  21. Jeannette Brosig-Koch & Heike Hennig-Schmidt & Nadja Kairies & Daniel Wiesen, 2013. "How to Improve Patient Care? – An Analysis of Capitation, Fee-for-Service, and Mixed Payment Schemes for Physicians," Ruhr Economic Papers 0412, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.
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  25. Ting Liu & Ching-to Albert Ma, 2012. "Health Insurance, Treatment Plan, and Delegation to Altruistic Physician," Department of Economics Working Papers 12-08, Stony Brook University, Department of Economics.
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