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The Impact of Provider Choice on Workers' Compensation Costs and Outcomes

Listed author(s):
  • David Neumark
  • Peter S. Barth
  • Richard Victor

We study how provider choice in workers' compensation cases affects costs and outcomes. When employees choose the provider, costs are higher and return-to-work outcomes are worse, while physical recovery is the same although satisfaction with medical care is higher. The higher costs and worse return-to-work outcomes associated with employee choice arise largely when employees selected a new provider, rather than a provider with whom the worker had a pre-existing relationship. The findings lend some support to recent policy changes limiting workers' ability to choose a provider with whom they do not have a prior relationship.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 11855.

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Date of creation: Dec 2005
Publication status: published as David Neumark & Peter S. Barth & Richard A. Victor, 2007. "The Impact of Provider Choice on Workers' Compensation Costs and Outcomes," ILR Review, Cornell University, ILR School, vol. 61(1), pages 121-142, October.
Handle: RePEc:nbr:nberwo:11855
Note: LS
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  1. Silvana Pozzebon, 1994. "Medical Cost Containment under Workers' Compensation," ILR Review, Cornell University, ILR School, vol. 48(1), pages 153-167, October.
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