Physician Beliefs and Patient Preferences: A New Look at Regional Variation in Health Care Spendingf.

David Cutler¹, Jonathan S Skinner¹, Ariel Dora Stern¹, David Wennberg¹

¹Cutler: Department of Economics, Harvard University, 230 Littauer Center, 1805 Cambridge Street, Cambridge, MA 02138, and National Bureau of Economic Research; Skinner: Department of Economics, Dartmouth College, Hinman Box 6106, Hanover, NH 03755, Dartmouth Institute for Health Policy and Clinical Practice, Geisel School of Medicine, and National Bureau of Economic Research; Stern: Technology and Operations Management Unit, Harvard Business School, Morgan Hall 433, Boston, MA 02136, and Ariadne Labs at Brigham and Women's Hospital and the Harvard T. H. Chan School of Public Health; Wennberg: Quartet Health, 114 West 41st Street, New York, NY 10036.

PubMed PMC DOI PDF

Abstract

There is considerable controversy about the causes of regional variations in health care expenditures. Using vignettes from patient and physician surveys linked to fee-for-service Medicare expenditures, this study asks whether patient demand-side factors or physician supply-side factors explain these variations. The results indicate that patient demand is relatively unimportant in explaining varia…

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