The Impact of Tort Reform on Intensity of Treatment: Evidence from the Heart Patients

Avraham, Ronen; Schanzenbach, Max M.

doi:10.2139/ssrn.1639288

Cited by 16 publications

(39 citation statements)

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“…Finally, it is important to note that our data also include instances in which state courts overturned laws because of constitutionality issues. As we show later, analysis focusing on these reforms alone provides results that are consistent with our baseline results 8. Our paper focuses on the demand channel of liability risks (that is, changes in malpractice liability risks affect physicians' demand for new technologies) instead of on the direct effect of product liability risk on manufacturers for the following reasons.…”

supporting

confidence: 81%

“…Kessler and McClellan (1996) examine Medicare beneficiaries treated for serious heart diseases and find that tort reforms lead to reductions in medical expenditures of five to nine percent without substantial effects on mortality or medical complications. Similarly, Avraham and Schanzenbach (2015) find that the probability of heart patients receiving a major intervention drops by five percent after a state implements non-economic damage caps. These results provide evidence for the practice of defensive medicine when liability risks are high.…”

Section: Related Literaturementioning

confidence: 94%

“…Policy debates typically contrast the high costs of defensive medicine procedures with their low expected benefits to patients. A number of studies have investigated the relationship between the tort system and treatment intensity or medical expenditures, and they provide evidence of the practice of defensive medicine (inter alia see Kessler and McClellan, 1996;and Avraham and Schanzenbach, 2015).…”

Section: Introductionmentioning

confidence: 99%

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Tort Reform and Innovation

Galasso

Luo

2017

The Journal of Law and Economics

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and Strategy conference, and the Northwestern Searle Conference on Innovation Economics for helpful comments. We are also grateful to Kira Fabrizio and Ronnie Chatterji for sharing data on physician-inventors. Danielle Wedde and Esther Yan provided excellent research assistance. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research. NBER working papers are circulated for discussion and comment purposes. They have not been peer-reviewed or been subject to the review by the NBER Board of Directors that accompanies official NBER publications.

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supporting

confidence: 81%

Section: Related Literaturementioning

confidence: 94%

Section: Introductionmentioning

confidence: 99%

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Tort Reform and Innovation

Galasso

Luo

2017

The Journal of Law and Economics

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“…As we show later, analysis focusing on these reforms alone provides results that are consistent with our baseline results. 8 Our paper focuses on the demand channel of liability risks (that is, changes in malpractice liability risks affect physicians' demand for new technologies) instead of on the direct effect of product liability risk on manufacturers for the following reasons. First, different from many other sectors, medical devices are subject to national regulation.…”

Section: Methodsmentioning

confidence: 99%

“…Avraham and Schanzenbach (2015) show that the probability of receiving a major intervention in the form of either an insurer and find that the average physician spends 50. for an easy delivery of the fetus during a cesarean section when fetal head is deeply wedged in the pelvic cavity; an apparatus and method that position a patient for rapid and effective endotracheal intubation; and a device delivering bioactive materials that help wound recovery after surgeries.…”

Section: Basic Frameworkmentioning

confidence: 99%

Tort Reform and Innovation

Galasso

Luo

2016

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Current academic and policy debates focus on the impact of tort reforms on physicians' behavior and medical costs. This paper examines whether these reforms also affect incentives to develop new technologies. We find that, on average, laws that limit the liability exposure of healthcare providers are associated with a significant reduction in medical device patenting and that the effect is predominantly driven by innovators located in the states passing the reforms. Tort laws have the strongest impact in medical fields in which the probability of facing a malpractice claim is the largest, and they do not seem to affect the amount of new technologies of the highest and lowest quality. Our results underscore the importance of considering dynamic effects in the economic analysis of tort laws.

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The Demand for Healthcare Regulation: The Effect of Political Spending on Occupational Licensing Laws

McMichael¹

2017

Southern Economic Journal

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Using data on political spending in state elections, this study considers the role of political contributions by healthcare professional interest groups in states' decisions to enact occupational licensing laws. These laws govern how different professions may operate in healthcare markets, and while they ostensibly exist to protect consumers, licensing laws can also insulate professionals from competition in healthcare markets. Higher political spending by physician interest groups increases the probability that a state maintains licensing laws restricting the practices of nurse practitioners (NPs) and physician assistants (PAs). Conversely, increased spending by hospital interest groups increases the probability that a state allows NPs and PAs to practice with more autonomy. Nurse groups, which include groups affiliated with NPs, have a smaller effect on licensing laws. And nonphysician groups, which include groups affiliated with PAs, have almost no effect on licensing laws. These results are consistent with the investment theory of political spending.

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The Impact of Tort Reform on Intensity of Treatment: Evidence from the Heart Patients

Cited by 16 publications

References 0 publications

Tort Reform and Innovation

Tort Reform and Innovation

Tort Reform and Innovation

The Demand for Healthcare Regulation: The Effect of Political Spending on Occupational Licensing Laws

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