Group Practice and Physician Discipline
Mar 01, 1995
Shirley Svorny and Roger Feldman
This paper explores the relationship between group practice in the physician services market and the rate at which authorities discipline incompetent or malfeasant physicians. We suggest that group practice presence increases physician incentives to reveal inappropriate practice patterns of other physicians. Also, we argue that the presence of group practice concentrates the worst physicians on the sole practitioner market. We hypothesize that these effects reduce the costs of detection of incompetent or malfeasant physicians, thereby increasing disciplinary actions. Empirical tests confirm the hypothesis that group practice is positively related to the rate of physician discipline at the state level.