Who Pays? The Incidence of High Malpractice Premiums

Mark Pauly, The Wharton School, University of Pennsylvania
Christy Thompson, University of Minnesota
Thomas Abbott, Medstat, Inc.
James Margolis, Medical Group Management Association
William Sage, University of Texas-Austin

Abstract

This paper uses data from physician group practice to examine the relationship between malpractice premium levels and physician net incomes for the years 1994, 1998, and 2002, a period in which malpractice premiums rose rapidly. We find, as did work covering earlier periods of premium growth, that physician net incomes were not reduced by high or rising premiums, and that gross practice revenues were higher when premiums were higher. There is evidence that this forward shifting of costs was associated more with higher quantities of services than with higher unit fees.

Recommended Citation

Mark Pauly, Christy Thompson, Thomas Abbott, James Margolis, and William Sage (2006) "Who Pays? The Incidence of High Malpractice Premiums," Forum for Health Economics & Policy: Vol. 9: Iss. 1 (Frontiers in Health Policy Research), Article 2.
http://www.bepress.com/fhep/9/1/2

 
 
 
 

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