The effect of physician remuneration on regional variation in hospital treatments

Rudy Douven, R Mocking, I (Ilaria) Mosca

Research output: Contribution to journalArticleAcademic

12 Citations (Scopus)


We study medical practice variations for nine hospital treatments in the Netherlands. Our panel data estimations include various control factors and physician’s role to explain hospital treatments in about 3,000 Dutch zip code regions over the period 2006–2009. In particular, we exploit the physicians’ remuneration difference—fee-for-service (FFS) versus salary—to explain the effect of financial incentives on medical production. We find that utilization rates are higher in geographical areas where more patients are treated by physicians that are paid FFS. This effect is strong for supply sensitive treatments, such as cataracts and tonsillectomies, while we do not find an effect for non-supply sensitive treatments, such as hip fractures.
Original languageEnglish
Pages (from-to)215-240
Number of pages25
JournalInternational Journal of Health Care Finance and Economics
Issue number2
Publication statusPublished - 1 Feb 2015

Research programs

  • EMC NIHES-05-63-03 Competition


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