Curb your premium! evaluating state intervention in medical malpractice insurance
Using data of Italian public healthcare providers over years 2001 through 2008, we evaluate the impact of two policies adopted by Italian Regions (i.e., States) to cope with increasing medical malpractice costs using a Difference-in-Difference specification. We assess the impact of the policies on premiums paid and legal expenditures. The first policy consisted in collecting information and monitoring both compensation requests and any legal action related to a medical malpractice claim against a public healthcare provider. The second policy is a switch from private to public insurance for damages up to 500,000 euros combined with a centralized-regional contracting out in the private insurance market for damages in excess of 500,000 euros. Both policies represent attempts to cope with multiple agency problems within the public sector. Our results show that the impact of central monitoring in malpractice claims trend can reduce up to 29% the premiums paid for the treated providers, while the effect is obviously stronger for public insurance (41%). We control for the effects of the latter also on the trend of legal expenditures as proxy for common pool behaviors which do not result from our data. Validity tests show that our results are not driven by a decreasing trend affecting the insurance expenditures of the analyzed units before the policies’ introduction.
|Date of creation:||Jul 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Ludwigstraße 33, D-80539 Munich, Germany|
Web page: https://mpra.ub.uni-muenchen.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Daron Acemoglu & Davide Cantoni & Simon Johnson & James A. Robinson, 2011.
"The Consequences of Radical Reform: The French Revolution,"
American Economic Review,
American Economic Association, vol. 101(7), pages 3286-3307, December.
- Acemoglu, Daron & Cantoni, Davide & Johnson, Simon & Robinson, James A., 2011. "The consequences of radical reform: The French revolution," Munich Reprints in Economics 20170, University of Munich, Department of Economics.
- Daron Acemoglu & Davide Cantoni & Simon Johnson & James A. Robinson, 2009. "The Consequences of Radical Reform: The French Revolution," NBER Working Papers 14831, National Bureau of Economic Research, Inc.
- Acemoglu, Daron & Cantoni, Davide & Johnson, Simon & Robinson, James A, 2009. "The Consequences of Radical Reform: The French Revolution," CEPR Discussion Papers 7245, C.E.P.R. Discussion Papers.
- Sloan, Frank A, 1990. "Experience Rating: Does It Make Sense for Medical Malpractice Insurance," American Economic Review, American Economic Association, vol. 80(2), pages 128-33, May.
- George France & Francesco Taroni & Andrea Donatini, 2005. "The Italian health-care system," Health Economics, John Wiley & Sons, Ltd., vol. 14(S1), pages S187-S202.
- Melanie Lisac & Kerstin Blum & Sophia Schlette & Hans Maarse & Yvette Bartholomée & David McDaid & Adam Oliver & Ignacio Abásolo & Beatriz Lopez-Valcarcel & Gianluca Fiorentini & Matteo Lippi Bruni & , 2008. "Health Systems and Health Reform in Europe," Intereconomics: Review of European Economic Policy, Springer;German National Library of Economics;Centre for European Policy Studies (CEPS), vol. 43(4), pages 184-218, July.
- Danzon, Patricia M., 2000.
"Liability for medical malpractice,"
Handbook of Health Economics,
in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 26, pages 1339-1404
- Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
- David H. Autor & John J. Donohue III & Stewart J. Schwab, 2003.
"The Costs of Wrongful-Discharge Laws,"
NBER Working Papers
9425, National Bureau of Economic Research, Inc.
- Decio Coviello & Stefano Gagliarducci, 2010. "Tenure in Office and Public Procurement," CEIS Research Paper 179, Tor Vergata University, CEIS, revised 21 Dec 2010.
- Kessler, Daniel & McClellan, Mark, 2002. "Malpractice law and health care reform: optimal liability policy in an era of managed care," Journal of Public Economics, Elsevier, vol. 84(2), pages 175-197, May.
- Daniele Fabbri & Silvana Robone, 2010. "The geography of hospital admission in a national health service with patient choice," Health Economics, John Wiley & Sons, Ltd., vol. 19(9), pages 1029-1047, September.
- Daniel P. Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," NBER Working Papers 5466, National Bureau of Economic Research, Inc.
- Paul Fenn & Alastair Gray & Neil Rickman, 2004. "The Economics of Clinical Negligence Reform in England," Economic Journal, Royal Economic Society, vol. 114(496), pages F272-F292, 06.
- Eugenio Anessi-Pessina & Elena Cantù & Claudio Joninii, 2004. "Phasing Out Market Mechanisms in the Italian National Health Service," Public Money & Management, Chartered Institute of Public Finance and Accountancy, vol. 24(5), pages 309-316, October.
- Daniel Kessler & Mark McClellan, 1996. "Do Doctors Practice Defensive Medicine?," The Quarterly Journal of Economics, Oxford University Press, vol. 111(2), pages 353-390.
- Fenn, Paul & Gray, Alastair & Rickman, Neil, 2007. "Liability, insurance and medical practice," Journal of Health Economics, Elsevier, vol. 26(5), pages 1057-1070, September.
- Bordignon, Massimo & Turati, Gilberto, 2009. "Bailing out expectations and public health expenditure," Journal of Health Economics, Elsevier, vol. 28(2), pages 305-321, March.
- Daniel P. Kessler, 2011. "Evaluating the Medical Malpractice System and Options for Reform," Journal of Economic Perspectives, American Economic Association, vol. 25(2), pages 93-110, Spring.
When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:32301. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Joachim Winter)
If references are entirely missing, you can add them using this form.