Physician Induced Demand: Is There an Effect of Different Fee Structures?

Time: 2012, Tuesday January 24th, 13.00-14.00 hours
Location: CPB-office, Van Stolkweg 14, The Hague

Presentation: Rudy Douven (CPB)

Discussant: Martin Salm (Tilburg University)

Language: English

Registration:  Please register by sending an email to seminars@cpb.nl.

Abstract subject: Using a panel data set of about 1,7 million hospital treatments we estimate whether Dutch physicians are vulnerable to demand inducement during the period 2006 to 2009. To estimate this effect we exploit the variation in fee structures among Dutch physicians, of which 75 percent is paid according to a fee-for-service type of payment and 25 percent receives a fixed salary. We find strong evidence for PID. An increase of 1 percent in the number of Dutch physicians, if they all were paid fee-for-service, would increase the number of treatments by 0.4 percent on average. Salaried physicians working at teaching and general hospitals show a significantly lower average effect of 0.15 percent.

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