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Using artefactual field and lab experiments to investigate how fee-for-service and capitation affect medical service provision

Author

Listed:
  • Brosig-Koch, Jeannette
  • Hennig-Schmidt, Heike
  • Kairies-Schwarz, Nadja
  • Wiesen, Daniel
Abstract
We analyze how physicians, medical students, and non-medical students respond to financial incentives from fee-for-service and capitation. We employ a series of artefactual field and conventional lab experiments framed in a physician decision-making context. Physicians, participating in the field, and medical and non-medical students, participating in lab experiments, respond to the incentives in a consistent way: Significantly more medical services are provided under fee-for-service compared to capitation. The intensity by which subjects respond to incentives, however, differs by subject pool. Our findings are robust regarding subjects’ gender, age, and personality traits.

Suggested Citation

  • Brosig-Koch, Jeannette & Hennig-Schmidt, Heike & Kairies-Schwarz, Nadja & Wiesen, Daniel, 2016. "Using artefactual field and lab experiments to investigate how fee-for-service and capitation affect medical service provision," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PB), pages 17-23.
    • Handle: RePEc:eee:jeborg:v:131:y:2016:i:pb:p:17-23
    DOI: 10.1016/j.jebo.2015.04.011
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    More about this item

    Keywords

    Artefactual field experiment; Laboratory experiment; Fee-for-service; Capitation; Physician behavior;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets

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