PHYSICIAN REACTION TO PRICE CHANGES - AN EPISODE-OF-CARE ANALYSIS

Physicians may respond to fee reductions in a variety of ways. This ep isode-of-care analysis examines the impact of surgical fee reductions (mandated by the Omnibus Budget Reconciliation Acts [OBRAs] of 1986-87 ) on the overall pattern and cost of health care services provided in association with the surgical procedure itself: The study focuses on s ix procedure groups. cataract extractions; total hip replacement total knee replacement; coronary artery bypass graft (CABG) surgery; upper gastrointestinal (GI) endoscopy; and Prostatectomy Only two of these p rocedures give significant evidence for the existence of a service vol ume offset to the fee reductions.