Health Economics

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Do MRIs increase the liklihood a patient receives back surgery?

“Orthopedists and primary care physicians who begin billing for the performance of MRI procedures, rather than referring patients outside of their practice for MRI, appear to change their practice patterns such that they use more MRI for their patients with low back pain. These increases in MRI use appear to lead to increases in low back surgery receipt and health care spending among patients of orthopedic surgeons, but not of primary care physicians.”

What is it about patients who see primary care physicians that makes them less likely to get back surgery. I can think of a number of reasons:

  • Financial Incentives: Primary care physicians would not be the ones performing the surgery and thus have no financial incentive to favor surgery over rehabiliation.  Orthopedists who self-refer the surgery stand to gain thousands of dollars from this decision.
  • Provider Selection. Doctors who decide to become primary care physicians may favor less invasive treatment.
  • Patient Selection. Patients who visit primary care physicians may favor less invasive treatment. Or, patients who visit primary care physicians may be more likely to have lower income and less generous insurance coverage, and thus may be more likely not to opt for the back surgery.

Source

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My paper on how physician compensation affects surgery rates is being published in the May 2010 edition of Health Economics.  The abstract from the article is below:

This paper employs a nationally representative, household-based dataset in order to test how the compensation method of both the specialists and the primary care providers affects surgery rates. After controlling for adverse selection, I find that when specialists are paid through a fee-for-system scheme rather than on a capitation basis, surgery rates increase 78%. The impact of primary care physician compensation on surgery rates depends on whether or not referral restrictions are present.

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