Showing papers by "José J. Escarce published in 1993"

Racial differences in the elderly's use of medical procedures and diagnostic tests.

Abstract: OBJECTIVES. This study sought to examine racial differences in the use of medical procedures and diagnostic tests by elderly Americans. METHODS. We used 1986 physician claims data for a 5% national sample of Medicare enrollees aged 65 years and older to study 32 procedures and tests. For each service, we calculated the age- and sex-adjusted rate of use by race and the corresponding White-Black relative risk. RESULTS. Whites were more likely than Blacks to receive 23 services, and for many of these services, the differences in use were substantial. In contrast, Blacks were more likely than Whites to receive seven services. Whites had a particular advantage in access to higher-technology or newer services. Racial differences in use persisted among elders who had Medicaid in addition to Medicare coverage and increased among rural elders. CONCLUSIONS. There are pervasive racial differences in the use of medical services by elderly Americans that cannot be explained by differences in the prevalence of specific...

Would eliminating differences in physician practice style reduce geographic variations in cataract surgery rates

Abstract: This study uses Medicare physician-claims data to examine patient and physician contributions to variations in cataract surgery rates across U.S. metropolitan areas. Utilization is modelled as having two phases: the decision to seek an ophthalmologist's care, which is made by patients, and the decision to perform surgery on patients who seek care, which is partially controlled by ophthalmologists. Under this model, the effect of physician practice style on cataract surgery rates occurs through the influence of practice style on the second phase of utilization. Variation in patient care-seeking behavior contributed to the variation in the rate of cataract surgery. Moreover, multivariate regression analyses found that cataract surgery rates were influenced by economic and sociodemographic variables in predictable ways. Using the regression results, a "purged" cataract surgery rate that was free of any possible influence of physician practice style was calculated. Variation in the purged surgery rate was only slightly lower than variation in the observed surgery rate, suggesting that eliminating practice style as a factor in physician decision making (e.g., through practice guidelines) would reduce variations in cataract surgery rates by only a small amount.

Effects of Lower Surgical Fees on the Use of Physician Services Under Medicare

Abstract: Background and Objective. —The changes in physician fees that will occur under the resource-based Medicare Fee Schedule (MFS) are similar to those that took place under the Omnibus Budget Reconciliation Act of 1987 (OBRA 87), when Medicare fees for selected "overpriced" procedures and diagnostic tests were reduced. To gain insight regarding the changes in utilization that may occur under the MFS, this study examines the effects of the OBRA 87 fee reductions on the use of physician services by Medicare patients. Data and Methods. —The five specialties that were most affected by the OBRA 87 fee reductions were studied: ophthalmology, thoracic surgery, urology, orthopedic surgery, and gastroenterology. Medicare physician claims files for 1987 and 1989 were used to obtain data on utilization and fees. Multivariate regression analysis was used to assess the effect of changes in fees on changes in utilization. Results. —The best estimate of the effect of the OBRA 87 fee reductions on overall physician-services utilization, obtained by pooling the five study specialties, was that every 1% decrease in fees led to a 0.09% decrease in the volume and complexity of services (95% confidence interval, 0.49% decrease to 0.31% increase). This result was not sensitive to minor changes in the covariates included in the regression model. Conclusion. —To calculate payment levels during the transition to the MFS, the Health Care Financing Administration assumed that physicians whose Medicare revenue declines under the MFS will increase service volume and complexity enough to make up one half of the lost revenue. The findings of this study suggest that the Health Care Financing Administration's assumption was, at best, extreme. ( JAMA . 1993;269:2513-2518)

Medicare patients' use of overpriced procedures before and after the omnibus budget reconciliation act of 1987

Abstract: OBJECTIVES. Under the Omnibus Budget Reconciliation Act of 1987, Medicare reduced physician fees for 12 procedures identified as overprices. This paper describes trends in the use of these procedures and other physician services by Medicare patients during the 4-year period surrounding the implementation of the 1987 budget act. METHODS. Medicare physician claims files were used to develop trends in physician-services use from 1986 to 1989. Services were grouped into four categories: overpriced procedures, other surgery, medical care, and ancillary tests. RESULTS. Growth in the volume of overpriced procedures slowed substantially after the 1987 budget act was implemented. Moreover, the reduction in the rate of volume growth for these procedures differed little among specialities or areas. In comparison, the rate of volume growth fell modestly for other surgery, was unchanged for medical care, and increased for ancillary tests. CONCLUSIONS. Increases do not necessarily occur in the volume of surgical proced...

Effects of the relative fee structure on the use of surgical operations.

Abstract: OBJECTIVE. The goal is to develop a theoretical and empirical framework for investigating how the demand for an operation may be affected by the fee for the operation (the own-price) and by fees for other services provided by surgeons in the same specialty (the cross-price). The theory suggests an empirical test of whether surgeons create demand for surgery. DATA SOURCES AND STUDY SETTING. The study examines the use of 11 frequently performed surgical operations by elderly Medicare enrollees in a cross-section of 316 U.S. metropolitan areas. Medicare physician claims and enrollment files for 1986 are the principal sources of data. STUDY DESIGN. Using econometric methods, a structural demand equation modified to include the own-price and the cross-price is estimated for each study operation. PRINCIPAL FINDINGS. The theory suggests that the utilization response to changes in fees may differ among operations depending on whether demand creation occurs and on the interplay of distinct own-price and cross-price effects. However, the results of the empirical analyses are inconclusive regarding the most appropriate economic model of surgical utilization. Both neoclassical behavior and demand creation are observed, but technical limitations of the analyses, including the cross-sectional design of the study, preclude definitive inferences. CONCLUSIONS. Despite the lack of definitive empirical results, the study has several implications for future research regarding the effect of changes in fees on surgical utilization. In particular, future studies should consider the roles of distinct own-price and cross-price effects, examine the importance of the supply-demand balance in physician services markets, and assess whether typologies of operations that are based on the strictness of their clinical indications predict the appropriate economic model of utilization.

OBRA Fee Reduction and Physician Behavior

Abstract: To the Editor. —In a recent article 1 inThe JOURNAL, I reported that the Medicare fee reductions for overpriced procedures under the Omnibus Budget Reconciliation Act of 1987 (OBRA 87) did not affect the use of physician services by Medicare patients. Drs Ginsburg and Hogan, 2 in an accompanying Commentary, disagree with my conclusions, alleging methodological problems with my study. They contrast my findings with those of the Physician Payment Review Commission (PPRC), 3 which found that the OBRA 87 fee reductions resulted in higher use of surgeons services (ie, a "behavioral offset"). Ginsburg and Hogan contend that the changes in Medicare fees that occurred during the period of my study (1987 to 1989) were driven largely by physicians' own pricing behavior rather than Medicare payment policy, rendering the interpretation of fee/utilization correlations problematic. Their assertion, however, reflects an incorrect reading of the available data. In 1989, Medicare fees