Selection and Improvement: Physician Responses to Financial Incentives

Preprint

1 January 2003

preprint

Published in RePEc

Abstract

In this study we examine the effects of transferring physicians from a compensation system based on salary to a profit-sharing system. Consistent with theory, we find that the change has a large and significant effect on the quantity of services provided. In addition, we find a selection effect, where the least productive doctors leave the company and more productive doctors join.

Keywords

SELECTION EFFECT
SHARING SYSTEM
COMPENSATION SYSTEM
SYSTEM BASED
PHYSICIAN RESPONSES
DOCTORS LEAVE
PRODUCTIVE DOCTORS
TRANSFERRING PHYSICIANS

All Related Versions

Version 1, 2003-01-01, RePEc

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