Selective Hearing: Physician‐Ownership and Physicians’ Response to New Evidence

17 Pages Posted: 3 Jun 2017

See all articles by David H. Howard

David H. Howard

Emory University - Department of Health Policy and Management

Guy David

University of Pennsylvania - Health Care Systems Department

Jason Hockenberry

Emory University

Date Written: Spring 2017

Abstract

Physicians, acting in their role as experts, are often faced with situations where they must trade off personal and patient welfare. Physicians’ incentives vary based on the organizational environment in which they practice. We use the publication of a major clinical trial, which found that a common knee operation does not improve outcomes for patients with osteoarthritis, as an “informational shock” to gauge the impact of physicians’ agency relationships on treatment decisions. Using a 100% sample of procedures in Florida from 1998 to 2010, we find that publication of the trial reduced procedure volume, but the magnitude of the decline was smaller in physician‐owned surgery centers. Incentives affected physicians’ reactions to evidence.

Suggested Citation

Howard, David H. and David, Guy and Hockenberry, Jason, Selective Hearing: Physician‐Ownership and Physicians’ Response to New Evidence (Spring 2017). Journal of Economics & Management Strategy, Vol. 26, Issue 1, pp. 152-168, 2017. Available at SSRN: https://ssrn.com/abstract=2979702 or http://dx.doi.org/10.1111/jems.12178

David H. Howard (Contact Author)

Emory University - Department of Health Policy and Management ( email )

1518 Clifton Road NE
Atlanta, GA 30322
United States

Guy David

University of Pennsylvania - Health Care Systems Department ( email )

3641 Locust Walk
Colonial Penn Center
Philadelphia, PA 19104-6358
United States

HOME PAGE: http://www.wharton.upenn.edu/faculty/david.html

Jason Hockenberry

Emory University ( email )

201 Dowman Drive
Atlanta, GA 30322
United States

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