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Defensive Medicine: Evidence from Military Immunity.


ABSTRACT: We estimate the extent of defensive medicine by physicians, embracing the no-liability counterfactual made possible by the structure of liability rules in the Military Heath System. Active-duty patients seeking treatment from military facilities cannot sue for harms resulting from negligent care, while protections are provided to dependents treated at military facilities and to all patients-active-duty or not-that receive care from civilian facilities. Drawing on this variation and exploiting exogenous shocks to care location choices stemming from base-hospital closures, we find suggestive evidence that liability immunity reduces inpatient spending by 5% with no measurable negative effect on patient outcomes.

SUBMITTER: Frakes M 

PROVIDER: S-EPMC6800742 | biostudies-literature | 2019 Aug

REPOSITORIES: biostudies-literature

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Defensive Medicine: Evidence from Military Immunity.

Frakes Michael M   Gruber Jonathan J  

American economic journal. Economic policy 20190801 3


We estimate the extent of defensive medicine by physicians, embracing the no-liability counterfactual made possible by the structure of liability rules in the Military Heath System. Active-duty patients seeking treatment from military facilities cannot sue for harms resulting from negligent care, while protections are provided to dependents treated at military facilities and to all patients-active-duty or not-that receive care from civilian facilities. Drawing on this variation and exploiting ex  ...[more]

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