Who Pays? The Incidence of High Malpractice Premiums

Document Type

Article

Publication Date

12-2006

Journal Title

Forum for Health Economics & Policy

ISSN

1558-9544

DOI

10.2202/1558-9544.1039

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.

Volume Number

9

Issue Number

1

Publisher

De Gruyter

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