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Centre for Health Economics and Policy Analysis


The effect of physician numbers and fees on hospital treatments subject of seminar

25 Oct 2012

Research showing that having a higher concentration of physicians and paying them based on output increased the number of hospital treatments in Holland for nine analyzed conditions will be the subject of the CHEPA monthly seminar on November 14, presented by visiting professor Ilaria Mosca of Erasmus University Rotterdam.

In her presentation, entitled The effect of physician fees and density differences on regional variation in hospital treatment, Mosca will describe results of an analysis of a panel data set of about 1.7 million hospital records in 4,000 Dutch zip code regions for the years 2006 to 2009, conducted to estimate the effect of physician fees and physician density on regional variation in hospital care for nine different treatments.

When the physicians were all paid according to an output-based reimbursement scheme, a one per cent increase in the total number of doctors increased the number of treatments by 0.40 per cent on average, the analysis found, but for salaried physicians a significantly lower average effect of 0.15 per cent was noted. No, or weak, effects were found for hip fractures, which were used as a control treatment.

The data was also used to assess the impact of reverse causality, excess demand, border crossing, and availability effect. At the seminar Mosca will discuss how the findings lend support to the existence of supplier-induced demand for the majority of the analyzed treatments.

The seminar will take place in CRL B119, from 12:30 p.m. to 1:30 p.m. All are welcome to attend. The seminar will be available remotely for those who are unable to attend. Click here for instructions on how to listen to the presentation through Elluminate.

Mosca is an assistant professor at the Institute of Health Policy and Management (iBMG) at the Erasmus University Rotterdam and is a senior economist with the Dutch Healthcare Authority. She has a Ph.D. in economics from the University of Lugano, Switzerland. Her areas of research include: healthcare reform, policy, and performance; competition, regulation, and rationing in healthcare; market monitoring, and funding of healthcare systems.


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