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Physicians' Multitasking and Incentives: Empirical Evidence from a Natural Experiment

Author

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  • Etienne Dumont
  • Bernard Fortin
  • Nicolas Jacquemet
  • Bruce Shearer

Abstract

We analyse how physicians respond to contractual changes and incentives within a multitasking environment. In 1999 the Quebec government (Canada) introduced an optional mixed compensation (MC) system, combining a fixed per diem with a partial (relative to the traditional fee-for-service system) fee for services provided. We combine panel survey and administrative data on Quebec physicians to evaluate the impact of this change in incentives on their practice choices. We highlight the differentiated impact of incentives on various dimensions of physician behaviour by considering a wide range of labour supply variables: time spent on seeing patients, time devoted to teaching, administrative tasks or research, as well as the volume of clinical services and average time per clinical service. Our results show that, on average, the reform induced physicians who changed from FFS to MC to reduce their volume of (billable) services by 6.15% and to reduce their hours of work spent on seeing patients by 2.57%. Their average time spent per service increased by 3.81%, suggesting a potential quality-quantity substitution. Also the reform induced these physicians to increase their time spent on teaching and administrative duties (tasks not remunerated under the fee-for-service system) by 7.9%. En 1999, le ministère de la Santé et des Services Sociaux du Québec introduisait un mode de rémunération mixte optionnel pour rémunérer l'activité hospitalière des médecins spécialistes. Ce mode combine une rémunération forfaitaire pour chaque jour de travail (per diem ou demi per diem) et une rémunération partielle à l'acte s'exprimant en un pourcentage du tarif habituellement applicable pour un service donné. Cette étude jumelle en panel des données de sondage du Collège des Médecins du Québec et des données administratives de la Régie de l'assurance maladie du Québec pour évaluer l'impact de ce mode de rémunération sur les choix de pratique des spécialistes. Nous mettons l'accent sur l'effet de la rémunération mixte sur plusieurs dimensions du comportement professionnel du médecin : heures consacrées aux patients, heures consacrées à l'enseignement, aux activités médicales administratives et à la recherche, volume de services médicaux et temps moyen par service médical. Nos résultats montrent que l'introduction de la rémunération mixte a incité les médecins qui sont passés de la rémunération à l'acte à la rémunération mixte à réduire leur nombre de services médicaux (facturables) de 6,15 % et à réduire leurs heures de travail consacrées aux patients de 2,57 %. En revanche, le temps moyen par service médical s'est accru de 3,81 %, ce qui peut suggérer une substitution entre la quantité et la qualité des services. La réforme a aussi incité ces médecins à accroître le temps consacré à l'enseignement et aux activités médicales administratives (activités non rémunérées par la rémunération à l'acte) de 7,9 %. En outre, le temps consacré par ces médecins à la recherche (activité non rémunérée par l'un ou l'autre des modes de rémunération) a diminué de 14,7 %. Enfin, le revenu des médecins qui sont passés à la rémunération mixte s'est accru de 8,05 %, indiquant qu'il était financièrement rentable pour ceux-ci de choisir ce mode de rémunération.

Suggested Citation

  • Etienne Dumont & Bernard Fortin & Nicolas Jacquemet & Bruce Shearer, 2008. "Physicians' Multitasking and Incentives: Empirical Evidence from a Natural Experiment," CIRANO Working Papers 2008s-20, CIRANO.
  • Handle: RePEc:cir:cirwor:2008s-20
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    More about this item

    Keywords

    physician payment mechanisms; multitasking; mixed-payment systems; incentive contracts; labour supply; self-selection; panel estimation.; mécanismes de rémunération des médecins; fonctionnement multitâche; rémunération mixte; contrats incitatifs; offre de travail; auto-sélection; estimation en panel;
    All these keywords.

    JEL classification:

    • I10 - Health, Education, and Welfare - - Health - - - General
    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply

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