Patient Welfare under the Legal Standard of Care
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Anja Olbrich
Abstract
Presuming that the standard of care reflected in the physician reimbursement scheme harms patients, German and US courts enforce their traditional legal standard of care in malpractice lawsuits. This paper summarizes the literature, evaluates the legal standard in microeconomic terms and determines the insurers' and courts' impact on patient welfare. The legal standard proves to be inefficiently high. By contrast, patient welfare is maximized when insurers apply a two-part reimbursement scheme that induces physicians not to comply with the legal standard. If this is infeasible, another reimbursement scheme is suggested.
©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
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- The Shape of Demand: What Does It Tell Us about Direct-to-Consumer Marketing of Antidepressants?
- Stemming the Tide? The Effect of Expanding Medicaid Eligibility On Health Insurance Coverage
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- Contributions Article
- Sequential Patterns of Drug Use Initiation - Can We Believe In the Gateway Theory?
- The Effect of the Consolidated Omnibus Reconciliation Act of 1985 on Health Care Utilization of Employment Separators
- Did 'Targets and Terror' Reduce Waiting Times in England for Hospital Care?
- Mitigating the Problem of Unmeasured Outcomes in Quality Reports
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- Patient Welfare under the Legal Standard of Care
Artikel in diesem Heft
- Advances Article
- How Did SCHIP Affect the Insurance Coverage of Immigrant Children?
- The Shape of Demand: What Does It Tell Us about Direct-to-Consumer Marketing of Antidepressants?
- Stemming the Tide? The Effect of Expanding Medicaid Eligibility On Health Insurance Coverage
- Health Care Economics and Policy: An Introduction
- Contributions Article
- Sequential Patterns of Drug Use Initiation - Can We Believe In the Gateway Theory?
- The Effect of the Consolidated Omnibus Reconciliation Act of 1985 on Health Care Utilization of Employment Separators
- Did 'Targets and Terror' Reduce Waiting Times in England for Hospital Care?
- Mitigating the Problem of Unmeasured Outcomes in Quality Reports
- Advertising, Free-Riding, and Price Differences in the Market for Prescription Drugs
- Patient Welfare under the Legal Standard of Care