Physicians' responses to variations in Medicare fees for specific services

The Foundation's Changes in Health Care Financing and Organization program was designed to support research, demonstration, and evaluation projects examining major changes in health care financing.Under this project, the researchers will examine how physicians' provision of specific medical services to Medicare fee-for-service beneficiaries responds to variations in Medicare physician fees. They will examine the physicians' characteristics and local market factors to better understand the relationship between fees and the provision of services. Specifically, the project will explore: (1) the percentage change in service volume for a particular fee change; (2) how service volumes vary with local market conditions; (3) physician opportunities and underlying incentives to induce demand; and (4) services for which service-specific fee adjustments might be an effective tool to constrain unnecessary use. This project expands upon a previous study by the grantee that investigated overall provision of total Medicare services by physicians. The objective of the project is to guide policymakers attempting to discourage the provision of services that unnecessarily add to cost growth without improving quality or outcomes.

Grant Details

Amount Awarded $264,076.00

Awarded on: 1/31/2007

Time frame: 3/1/2007 - 6/30/2009

Grant Number: 60518


Mathematica Policy Research, Inc.

600 Alexander Park
P.O. Box 2393
Princeton, 08543-2393


James D. Reschovsky
Project Director