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Increased Perception of Malpractice Liability and the Practice of Defensive Medicine
Author(s) -
Chen Brian K.,
Yang ChunYuh
Publication year - 2014
Publication title -
journal of empirical legal studies
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.529
H-Index - 24
eISSN - 1740-1461
pISSN - 1740-1453
DOI - 10.1111/jels.12046
Subject(s) - malpractice , defensive medicine , liability , incentive , payment , face (sociological concept) , liability insurance , actuarial science , perception , business , psychology , law , medical malpractice , political science , economics , accounting , finance , sociology , social science , neuroscience , microeconomics
The extent and existence of defensive medicine in the face of malpractice pressure are subjects of perennial policy and academic debate. In this article, we investigate the impact of a series of arguably exogenous court rulings in T aiwan that increased physicians' perceived liability exposure, and a subsequent amendment to the law that reversed the courts' rulings, on physicians' test‐ordering behavior and choice of delivery method. We find that obstetricians most at risk for liability increased laboratory tests in response to the ruling, but did not change the likelihood of delivery by C esarean sections. We further show no consistent patterns of preventable complications, postdelivery emergency department visits, or hospital readmissions associated with physician behavioral change. The overall pattern of results is highly suggestive of the practice of defensive medicine among physicians in T aiwan, and that payment incentives and provider organizational forms may have mediated the impact of changing liability risks.