Download This PaperSelection and Improvement: Physician Responses to Financial Incentives
36 Pages Posted: 5 Dec 2003 Last revised: 16 Nov 2022
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Selection and Improvement: Physician Responses to Financial Incentives
Number of pages: 35
Posted: 29 Mar 2001
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296
Date Written: October 2003
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.
Suggested Citation: Suggested Citation
Barro, Jason R. and Beaulieu, Nancy D., Selection and Improvement: Physician Responses to Financial Incentives (October 2003). NBER Working Paper No. w10017, Available at SSRN: https://ssrn.com/abstract=453811
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