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Information shocks and provider responsiveness: evidence from interventional cardiology

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Listed:
  • Propper, Carol
  • Avdic, Daniel
  • von Hinke Kessler Scholder, Stephanie
  • Lagerqvist, Bo
  • Vikström, Johan

Abstract

We examine physician responses to global information shocks and the impact on patient outcomes. We exploit an international “firestorm†over the safety of an innovation in healthcare, drug-eluting stents. We use rich micro-data on interventional cardiologists’ use of stents to de- fine and measure responsiveness to news shocks. We find substantial heterogeneity in responsiveness to both good and bad news and an association between speed of response to news and patient outcomes. Patients treated by cardiologists who respond slowly to news shocks have fewer adverse outcomes. These results cannot be attributed to financial incentives, patient-physician sorting or heterogeneity in skill.

Suggested Citation

  • Propper, Carol & Avdic, Daniel & von Hinke Kessler Scholder, Stephanie & Lagerqvist, Bo & Vikström, Johan, 2019. "Information shocks and provider responsiveness: evidence from interventional cardiology," CEPR Discussion Papers 13627, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:13627
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    Cited by:

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    2. Sofia Amaral-Garcia, 2020. "Medical Device Companies and Doctors: Do their Interactions Affect Medical Treatments ?," Working Papers ECARES 2020-18, ULB -- Universite Libre de Bruxelles.
    3. Domenico Depalo & Jay Bhattacharya & Vincenzo Atella & Federico Belotti, 2019. "When Technological Advance Meets Physician Learning in Drug Prescribing," NBER Working Papers 26202, National Bureau of Economic Research, Inc.

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    More about this item

    Keywords

    Practice style; Response to news; Quality of care;
    All these keywords.

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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