The effect of malpractice law on physician supply: Evidence from negligence-standard reforms.

We explore whether the composition of the physician workforce is impacted by the clinical standards imposed on physicians under medical liability rules. Specifically, we explore whether the proportion of non-surgeons practicing in a region decreases-and thus whether the proportion of surgeons increases-when liability standards are modified so as to expect that physicians practice more intensively. For these purposes, we draw on a quasi-experiment made possible by states shifting from local to national customs as the basis for setting liability standards. Using data from the Area Health Resource File from 1977 to 2005, we find that the rate of non-surgeons among practicing physicians decreases by 2-2.4 log points (or by 1.4-1.7 percentage points) following the adoption of national-standard laws in initially low surgery-rate regions-i.e., following a change in the law that effectively expects physicians to increase their use of surgical approaches.

The Impact of a Tiered Network on Hospital Choice.

OBJECTIVE: To evaluate the effect of a tiered network on hospital choice for scheduled admissions. DATA: The 2009-2012 patient-level claims data from Blue Cross Blue Shield of Massachusetts (BCBSMA). STUDY DESIGN: BCBSMA's three-tiered hospital network employs large differential cost sharing to encourage patients to seek care at hospitals on the preferred tier. During the study period, 44 percent of hospitals were moved to a different tier based on changes in cost or quality performance. We relied on this longitudinal variation for identification and specified conditional logit models to estimate the effect of the tiered network (TN) on patients' hospital choices relative to a non-TN comparison group. PRINCIPAL FINDINGS: The TN was associated with increased use of hospitals on the preferred and middle tiers relative to the nonpreferred tier for planned admissions. The results suggest that if all members were in a TN plan, relative to all members being in a non-TN plan, scheduled admissions to hospitals on the nonpreferred tier would drop by 7.6 percentage points, while those to middle and preferred tier hospitals would rise by 0.9 and 6.6 percentage points, respectively. CONCLUSION: Differential cost sharing can steer patients toward preferred hospitals for planned admissions.

The effect of a large regional health plan's value-based insurance design program on statin use.

BACKGROUND: Cost-sharing requirements employed by health insurers to discourage the unnecessary use of medications may lead to underutilization of recommended treatment regimens and suboptimal quality of care. Value-based insurance design (VBID) programs seek to address these problems by lowering copayments to promote adherence to "high-value" medications that have been proven to be clinically beneficial. VBID evaluations to date have focused on programs implemented by self-insured employers. This study is among the first to assess the VBID program of a health plan. METHODS: We examined a VBID program for statins implemented by a large regional health plan in 2008 and assessed its effect on medication adherence. Copayments on VBID brand statins were reduced by 42.9% for employer-sponsored plans (the treatment group) and increased by 16.7% for state-sponsored plans (the control group) between the preintervention and postintervention periods. Propensity score weights were used to balance the treatment and control groups on observed characteristics. We evaluated the impact of the VBID program on adherence using an econometric model with a difference-in-difference design. RESULTS: Medication adherence increased 2.7 percentage points (P=0.033) among VBID brand statin users in the treatment group relative to the control group. With a baseline adherence rate of 77.6%, nonadherence was reduced by 11.9%. CONCLUSIONS: Copayment reductions on selected statin medications contributed to improvements in adherence. As one of the first studies to evaluate a health plan's VBID program, our findings demonstrate that insurer-based VBID programs may yield results similar to those achieved by employer-based programs.

"Pay-for-performance" as a quality improvement tool: perceptions and policy recommendations of physicians and program leaders.

BACKGROUND: Although pay-for-performance (P4P) compensation is widespread, questions have arisen about its efficacy in improving health care quality and consequences for vulnerable patients. OBJECTIVE: To assess perceptions of general internists and P4P program leaders regarding how to implement fair and effective P4P. METHODS: Qualitative investigation using in-depth interviews with P4P program leaders and focus groups with general internists. RESULTS: Internists emphasized a gradual and cautious approach to P4P implementation. They strongly recommended improving P4P measure validity and had detailed suggestions regarding how. Program leaders saw a need to implement perhaps imperfect programs but with continual improvement. Both groups advocated protecting vulnerable populations and made overlapping recommendations: improving measure validity; adjusting for patient characteristics; measuring improvements in quality (vs cutpoints); and providing incentives to physicians of vulnerable populations. Internists tended to favor explicit protections, while program leaders felt that P4P might inherently protect vulnerable patients by improving overall quality. DISCUSSION: Internists favored gradual P4P implementation, while P4P leaders saw an immediate need for implementation with iterative improvement. Both groups recommended specific measures to protect vulnerable populations such as improving measure validity, assessing improvements in quality, and providing special incentives to physicians of vulnerable populations.