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Can Contingency Fee Reforms Improve Maternal & Infant Health? Evidence from Nevada

Author

Listed:
  • DeCicca Philip

    (Dept of Economics, Ball State University and NBER, Muncie, USA)

  • Malak Natalie

    (Dept of Economics and Computational Analysis, The University of Alabama in Huntsville, Huntsville, USA)

Abstract

Contingency fee laws are intended to reduce the amount of defensive medicine practiced by physicians, but their impact on such behavior is theoretically ambiguous. While nearly half of all states have adopted some type of contingency fee laws, very little empirical evidence exists with respect to related impacts, and no rigorous studies examine their potential impacts on health. We examine the impact of a particular contingency fee reform that occurred in Nevada in 2004 using synthetic control methods. Consistent with our expectations, we find a systematic increase in the C-section rate of less-educated mothers in Nevada after implementation of the reform. However, we find no systematic effect on infant mortality, suggesting that contingency reforms contribute to an increase in defensive medicine without a corresponding improvement in health.

Suggested Citation

  • DeCicca Philip & Malak Natalie, 2021. "Can Contingency Fee Reforms Improve Maternal & Infant Health? Evidence from Nevada," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 21(4), pages 1185-1215, October.
    • Handle: RePEc:bpj:bejeap:v:21:y:2021:i:4:p:1185-1215:n:7
    DOI: 10.1515/bejeap-2020-0439
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    More about this item

    Keywords

    defensive medicine; C-section; infant mortality; contingency fee; tort reform; medical malpractice;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics

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