Peter Hull, Brown University

"Geographic Variation in Healthcare Utilization: The Role of Physicians"

Abstract

We study the role of physicians in driving geographic variation in US healthcare utilization. We estimate a model that separates variation in utilization of Medicare beneficiaries due to physicians, non-physician supply side factors, and patient demand. The model is identified by patient and physician migration and within-area matching. We find that at least a third of geographic variation can be explained by differences in the intensity with which physicians treat otherwise similar patients. Around three-fifths of physicians’ role comes from differences across areas in practice styles within specialty, while the other two-fifths reflects differences across areas in physician specialty mix.

Co-authors: Ivan Badinski, Amy Finkelstein, and Matthew Gentzkow

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Contact person: Casper Worm Hansen