Healthcare Economist November 20, 2023
Patients assigned to different primary care providers in the US have different levels of spending. This is not surprising, but to what degree is this result driven by variation in health care utilization compared to prices? A paper by Mehrotra et al. (2023) aims to answer this question using 2018 claims data from a large commercial insurer. They find that:
Per-patient spending in the highest quartile of spending medical groups was $1813 higher than per-patient spending in the lowest spending quartile of medical groups (50% higher relative spending). This overall difference was primarily driven by differences in inpatient care, imaging, and specialty care. In the scenario where we...
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