Abstract
The treatment of a patient often implies consultations with different health care professionals. This complex health care pathway raises the issue of the regulation of health care quality. In this study, we explore how teamwork among health care professionals affects the precaution behavior of each one depending on the liability regime. To this end, we develop a theoretical model that is tested in a controlled laboratory experiment. Each health care professional chooses the precaution level invested to treat the patient. His decisions have real consequences outside the lab for charities dealing with real patients. Experimental conditions vary the number of involved health care professionals and the liability regime. Contrary to theory, we show that the negligence rule and strict liability do not provide optimal incentives to take care. The negligence rule is more efficient than strict liability to reduce the absolute deviations from optimal precaution level. Moreover, under both liability rules, teamwork decreases the health care professionals’ precaution levels.
Similar content being viewed by others
Notes
For the Institute of Healthcare Improvement, an adverse event is an “unintended physical injury resulting from or contributed to by medical care that requires additional monitoring, treatment or hospitalization, or that results in death”. Available online: http://www.ihi.org Accessed July 12, 2021.
This assumption is made for the needs of comparison between our experimental conditions. In practice, precautions could also be complements or substitutes. See Leshem (2017) for a general analysis.
French Court of Cassation, Civ., 20 May 1936, Mercier.
Art. L. 1142-1 of the French Public Health Code.
We call “condition” an experimental treatment. In our article, the word “treatment” is only related to the health care treatment.
In our experiment, patients are represented by charities. Although the participants could take precautions for voluntarily giving to charities, we interpret their preferences as patient-regarding preferences. We discuss later this assumption.
See Sullivan and Holt (2017) for a literature review of the experimental studies in law and economics.
See Galizzi et al. (2015) for a review on the physician’s preferences.
See Galizzi and Wiesen (2018) for a literature review on the behavioral experiments in the health field.
Precaution cost is identical for each consultation, even if the same HCP achieves both consultations. Indeed, each consultation is related to a specific task, which requires a specific informational search.
Our modeling of the treatment benefit is based on the theoretical analysis of Arlen and MacLeod (2005).
We assume that both HCPs take their precaution decisions simultaneously. Even if both consultations are made in a sequential way, the second HCP does not observe the precaution level of his colleague before taking his decision. Indeed, teamwork among HCPs is based on a trust relationship in general. For example, the second HCP does not call into question the diagnosis or the treatment prescribed by his colleague. Thus, he does not look for the time spent by his colleague to be informed.
It is easily verifiable that this equilibrium is unique. Another Nash equilibrium breaches the optimality of \(x^{*}\).
Our experiment is consistent with the five features characterizing the behavioral experiments in the health field according to Galizzi and Wiesen (2017): the issues and behaviors are health-related, the outcomes of decisions are behavioral, we test the insights from behavioral economics and conventional economics, we make a laboratory experiment, and we do not use deception.
The instructions can be found in the Appendix B.
The experiment was programmed by Kene Boun My on the web platform EconPlay (http://www.econplay.fr).
See Carpenter and Huet-Vaughn (2019) for a literature review on real-effort tasks.
The SVO Slide Measure is divided into six primary items and nine secondary items. Each item consists in a distribution of gains for the participant and for another one in the lab. The six primary items determine the participant’s behavior: altruist, prosocial, or individualist. The problem is that we find negative coefficients associated with the SVO. This would mean that a selfless HCP chooses a smaller precaution level than a selfish HCP, which is unlikely. See the Appendix A for the econometric analysis with the SVO variable.
Differences are compared by t-test.
See the post-experimental questionnaire in the Appendix C.
Table 6 reports tests for the differences between mean precaution levels provided in each treatment. Between liability regimes, we proceed to Tukey’s studentized range tests to control for the type I experiment-wise error rate. Between health care pathways, we perform paired t-tests because the experimental conditions are composed of the same samples. Non-parametric tests are used as robustness checks.
The difference is only significant at the \(10\%\) level whether HCPs work together according to two-sided Dunn test with Bonferroni adjustement.
In model (4), we add the dummy Damage in the period t-1 equal to 1 if damage occurred in the previous period; Selfish which expresses the average degree of egoism reported in the post-experimental questionnaire; Risk lover which expresses the average degree of risk loving and corresponds to the average choice of lottery made in Task 5; the dummy HealthMedicine equal to 1 if the participant is registered in health sciences, medicine or pharmacy; the interaction term HealthMedicine\(\times\)Teamwork to test whether health students behave differently from other participants when they work in a team; the dummy MasterPhD equal to 1 if the student is registered in a Master or PhD programme; Age which expresses the participant’s age in years; and the dummy Gender equal to 1 if the participant is female.
The absolute deviation is not censored at the same upper limit depending on the precaution behavior: to 3 for excess of caution, and to 13 for negligence. That is why we do not use a panel model for censored data but simply a linear panel model.
Comparison of variances is made by F-test (\(p<0.01\)), and Levene test as robustness check (\(p<0.05\) for one HCP, \(p<0.01\) for two HCPs).
The precaution level explained by the panel model is censored to be non-negative and below 16 units.
Differences are compared by t-test.
In our experimental design, we assume that there is no medical hazard.
References
Abeler, J., Falk, A., Goette, L., & Huffman, D. (2011). Reference points and effort provision. American Economic Review, 101(2), 470–492.
Angelova, V., Armantier, O., Attanasi, G., & Hiriart, Y. (2014). Relative performance of liability rules: Experimental evidence. Theory and Decision, 77(4), 531–556.
Antoci, A., Maccioni, A. F., & Russu, P. (2018). Medical practice and malpractice litigation in an evolutionary context. Journal of Evolutionary Economics, 28(4), 915–928.
Arlen, J., & MacLeod, B. W. (2005). Torts, expertise, and authority: Liability of physicians and managed care organizations. RAND Journal of Economics, 36(3), 494–519.
Brosig-Koch, J., Hehenkamp, B., & Kokot, J. (2017a). The effects of competition on medical service provision. Health Economics, 26(S3), 6–20.
Brosig-Koch, J., Hennig-Schmidt, H., Kairies-Schwarz, N., & Wiesen, D. (2016). Using artefactual field and lab experiments to investigate how fee-for-service and capitation affect medical service provision. Journal of Economic Behavior and Organization, 131, 17–23.
Brosig-Koch, J., Hennig-Schmidt, H., Kairies-Schwarz, N., & Wiesen, D. (2017b). The effects of introducing mixed payment systems for physicians: Experimental evidence. Health Economics, 26(2), 243–262.
Brown, J. P. (1973). Toward an economic theory of liability. Journal of Legal Studies, 2(2), 323–349.
Carpenter, J. & Huet-Vaughn, E. (2019). In A. Schram & A. Ule, eds, Handbook of Research Methods and Applications in Experimental Economics. Edward Elgar Publishing, chapter Real-effort tasks, pp. 368–383.
Castro, M. F., Ferrara, P., Guccio, C., & Lisi, D. (2019). Medical malpractice liability and physicians’ behavior: Experimental evidence. Journal of Economic Behavior and Organization, 166, 646–666.
Danzon, P. (1985). Liability and liability insurance for medical malpractice. Journal of Health Economics, 4(4), 309–331.
Darby, M. R., & Karni, E. (1973). Free competition and the optimal amount of fraud. Journal of Law and Economics, 16(1), 67–88.
Deffains, B., Espinosa, R., & Fluet, C. (2019). Laws and norms: Experimental evidence with liability rules. International Review of Law and Economics, 60,
Dulleck, U., Kerschbamer, R., & Sutter, M. (2011). The economics of credence goods: An experiment on the role of liability, verifiability, reputation, and competition. American Economic Review, 101(2), 530–559.
Eckel, C. C., & Grossman, P. J. (2008). Forecasting risk attitudes: An experimental study using actual and forecast gamble choices. Journal of Economic Behavior and Organization, 68(1), 1–17.
Ellis, R. P., & McGuire, T. G. (1990). Optimal payment systems for health services. Journal of Health Economics, 9(4), 375–396.
Farley, P. J. (1986). Theories of the price and quantity of physician services: A synthesis and critique. Journal of Health Economics, 5(4), 315–333.
Galizzi, M. M., Tammi, T., Godager, G., Linnosmaa, I., & Wiesen, D. (2015). ‘Provider altruism in health economics’, National Institute for Health and Welfare, Discussion paper 4/2015 .
Galizzi, M. M., & Wiesen, D. (2017). Behavioural experiments in health: An introduction. Health Economics, 26(S3), 3–5.
Galizzi, M. M., & Wiesen, D. (2018). Oxford Research Encyclopedia of Economics and Finance. Oxford Research Encyclopedias: Oxford University Press, chapter Behavioral experiments in health economics.
Garcia, S., Jacob, J. & Lambert, E.-A. (2021). ‘Efficiency of sharing liability rules: An experimental case’, Working Papers of BETA 2021-07 .
Godager, G., & Wiesen, D. (2013). Profit or patients’ health benefit? Exploring the heterogeneity in physician altruism. Journal of Health Economics, 32(6), 1105–1116.
Greiner, B. (2015). Subject pool recruitment procedures: Organizing experiments with ORSEE. Journal of the Economic Science Association, 1(1), 114–125.
Hennig-Schmidt, H., Selten, R., & Wiesen, D. (2011). How payment systems affect physicians’ provision behaviour - An experimental investigation. Journal of Health Economics, 30(4), 637–646.
Hennig-Schmidt, H., & Wiesen, D. (2014). Other-regarding behavior and motivation in health care provision: An experiment with medical and non-medical students. Social Science and Medicine, 108, 156–165.
Kesternich, I., Schumacher, H., & Winter, J. (2015). Professional norms and physician behavior: Homo oeconomicus or homo hippocraticus? Journal of Public Economics, 131, 1–11.
Kornhauser, L. A., & Revesz, R. L. (1989). Sharing damages among multiple torfeasors. Yale Law Journal, 98(5), 831–884.
Kornhauser, L., & Schotter, A. (1990). An experimental study of single-actor accidents. Journal of Legal Studies, 19(1), 203–233.
Landes, W. M., & Posner, R. A. (1980). Joint and multiple torfeasors: An economic analysis. Journal of Legal Studies, 9(3), 517–555.
Leshem, S. (2017). Allocation of liability: On the efficiency of composite sharing rules. Journal of Institutional and Theoretical Economics, 173(1), 25–43.
Martinsson, P., & Persson, E. (2019). Physician behavior and conditional altruism: The effects of payment system and uncertain health benefit. Theory and Decision, 87(3), 365–387.
Mello, M. M., Chandra, A., Gawande, A. A., & Studdert, D. M. (2010). National costs of the medical liability system. Health Affairs, 29(9), 1569–1577.
Murphy, R. O., Ackermann, K. A., & Handgraaf, M. J. J. (2011). Measuring social value orientation. Judgment and Decision Making, 6(8), 771–781.
OECD. (2017). Tackling Wasteful Spending on Health. OECD Publishing.
Olbrich, A. (2008a). Heterogeneous physicians, lawsuit costs, and the negligence rule. International Review of Law and Economics, 28(1), 78–88.
Olbrich, A. (2008b). The optimal negligence standard in health care under supply-side cost sharing. International Journal of Health Care Finance and Economics, 8(12), 73–85.
Schweizer, U. (2017). Allocation of liability: On the efficiency of composite sharing rules. Comment. Journal of Institutional and Theoretical Economics, 173(1), 50–53.
Shavell, S. (1987). Economic Analysis of Accident Law. Cambridge (USA) and London: Harvard University Press.
Simon, M. J. (1982). Diagnoses and medical malpractice: A comparison of negligence and strict liability systems. Bell Journal of Economics, 13(1), 170–180.
Sullivan, S. P. & Holt, C. A. (2017). in F. Parisi, ed., ‘The Oxford Handbook of Law and Economics’, Vol. 1: Methodology and Concepts, Oxford University Press, chapter Experimental Economics and the Law, pp. 78–104.
van Velthoven, B., & Van Wijck, P. (2009). Additive and non-additive risk factors in multiple causation. Review of Law and Economics, 5(1), 517–539.
Wang, J., Iversen, T., Hennig-Schmidt, H., & Godager, G. (2020). Are patient-regarding preferences stable? Evidence from a laboratory experiment with physicians and medical students from different countries. European Economic Review, 125, 103411.
Wright, D. J. (2011). Medical malpractice and physician liability under a negligence rule. International Review of Law and Economics, 31(3), 205–211.
Young, R., Faure, M., & Fenn, P. (2004). Causality and causation in tort law. International Review of Law and Economics, 24(4), 507–523.
Young, R., Faure, M., Fenn, P., & Willis, J. (2007). Multiple tortfeasors: An economic analysis. Review of Law and Economics, 3(1), 111–132.
Acknowledgements
I thank the participants at the 5th Annual Conference of the French Association of Law and Economics, the 37th Annual Conference of the European Association of Law and Economics, the 16th Conference of the Italian Society of Law and Economics, the 42th French Health Economists Days, and the 37th French Applied Microeconomics Days for the discussion on this paper. I also acknowledge Camille Aït-Youcef, Kene Boun My, Cécile Bourreau-Dubois, Gaye Del Lo, Sophie Harnay, Eve-Angéline Lambert, Sébastien Massoni, Sarah Van Driessche, and the two anonymous referees for their helpful comments and suggestions. Financial support by the University of Lorraine is gratefully acknowledged.
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
None.
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Supplementary Information
Below is the link to the electronic supplementary material.
Rights and permissions
About this article
Cite this article
Martin-Lapoirie, D. Teamwork in health care and medical malpractice liability: an experimental investigation. Eur J Law Econ 54, 251–282 (2022). https://doi.org/10.1007/s10657-021-09708-3
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10657-021-09708-3