Class 11: Physician Agency and Payment Models

Objectives

• Define a capitated payment and describe at least one type of capitated payment currently in the U.S.
• Solve for treatment levels with capitated payments
• Explain at least one recent hospital pay for performance program
• Explain the difference between FFS and capitated payment models

Activities

• In-class problem on physician agency with capitated payments. The worksheet is here.
• Discuss (Clemens and Gottlieb 2014). Link to paper here.

References

Clemens, Jeffrey, and Joshua D Gottlieb. 2014. “Do Physicians’ Financial Incentives Affect Medical Treatment and Patient Health?” American Economic Review 104 (4): 1320–49.