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The effect of medical malpractice liability on rate of referrals received by specialist physicians

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  • Xu, Xiao
  • Spurr, Stephen J.
  • Nan, Bin
  • Fendrick, A. Mark

Abstract

Using nationally representative data from the United States, this paper analyzed the effect of a state's medical malpractice environment on referral visits received by specialist physicians. The analytic sample included 12,839 ambulatory visits to specialist care doctors in office-based settings in the United States during 2003–2007. Whether the patient was referred for the visit was examined for its association with the state's malpractice environment, assessed by the frequency and severity of paid medical malpractice claims, medical malpractice insurance premiums and an indicator for whether the state had a cap on non-economic damages. After accounting for potential confounders such as economic or professional incentives within practices, the analysis showed that statutory caps on non-economic damages of $250,000 were significantly associated with lower likelihood of a specialist receiving referrals, suggesting a potential impact of a state's medical malpractice environment on physicians’ referral behavior.

Suggested Citation

  • Xu, Xiao & Spurr, Stephen J. & Nan, Bin & Fendrick, A. Mark, 2013. "The effect of medical malpractice liability on rate of referrals received by specialist physicians," Health Economics, Policy and Law, Cambridge University Press, vol. 8(4), pages 453-475, October.
    • Handle: RePEc:cup:hecopl:v:8:y:2013:i:04:p:453-475_00
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    Cited by:

    1. Paola Bertoli & Veronica Grembi, 2018. "Medical Malpractice: How Legal Liability Affects Medical Decisions," Contributions to Economic Analysis, in: Health Econometrics, volume 127, pages 235-261, Emerald Group Publishing Limited.
    2. Dan Perju-Dumbrava & Carmen-Corina Radu & Daniel Muresan & Ovidiu Chiroban & Raul Sîntamarean & Daniel Ureche & Radu-Bogdan Davidescu, 2016. "Malpractice In Obstetrics And Gynecology Case Report And Literature Review," FIAT IUSTITIA, Dimitrie Cantemir Faculty of Law Cluj Napoca, Romania, vol. 10(2), pages 220-229, October.

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