The effect of capitation on GPs' referral decisions

Health Econ. 2000 Apr;9(3):199-210. doi: 10.1002/(sici)1099-1050(200004)9:3<199::aid-hec514>3.0.co;2-2.

Abstract

In the Norwegian capitation trial, the payment system for general practitioners (GPs) has been changed; a practice allowance component has been replaced by a capitation component and the fee-per-item component constitutes a smaller part of a GPs practice income than previously. From the theoretical modelling of GPs' referral decisions, we predict that the replacement of the practice allowance by a capitation component will increase the rate of referrals to specialists. This hypothesis is supported by an exploratory empirical study with data from a sample of GPs participating in the experiment.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Aged
  • Capitation Fee*
  • Diagnosis-Related Groups
  • Family Practice*
  • Female
  • Humans
  • Male
  • Models, Econometric
  • Norway
  • Practice Patterns, Physicians'*
  • Referral and Consultation / economics*
  • Reimbursement Mechanisms