Working Paper: NBER ID: w11855
Authors: David Neumark; Peter S. Barth; Richard A. Victor
Abstract: We study how provider choice in workers' compensation cases affects costs and outcomes. When employees choose the provider, costs are higher and return-to-work outcomes are worse, while physical recovery is the same although satisfaction with medical care is higher. The higher costs and worse return-to-work outcomes associated with employee choice arise largely when employees selected a new provider, rather than a provider with whom the worker had a pre-existing relationship. The findings lend some support to recent policy changes limiting workers' ability to choose a provider with whom they do not have a prior relationship.
Keywords: provider choice; workers compensation; costs; outcomes
JEL Codes: J28; I18
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Provider choice (D71) | Medical payments (H51) |
| Provider choice (D71) | Indemnity benefits (J32) |
| Provider choice (D71) | Duration until substantial return to work (C41) |
| Provider choice (D71) | Likelihood of return to work (J22) |
| Provider choice (D71) | Perceived recovery from physical health (I12) |
| Provider choice (D71) | Worker satisfaction with care (J28) |
| Choosing a new provider (I11) | Medical payments (H51) |
| Choosing a new provider (I11) | Rates of substantial return to work (J29) |