Variations in medical practice are well documented, but there has been less
progress in explaining these variations. This paper discusses the existing
theories and hypotheses and concludes that a change in theoretical approac
h is required, to one that more directly highlights the social context infl
uencing the behaviour of doctors in their daily practice. An initial altern
ative model for explaining variation in practice style is presented. The pa
per illustrates how (combinations of) important structural factors, such as
the availability of hospital resources, the way the doctor is reimbursed,
the availability of patients, professional uncertainty, and the way the hos
pital is financed, lead to hypotheses about when different local standards
of medical care emerge. It is concluded that theoretical progress in resear
ch on variations in medical practice is possible and that empirical researc
h needs to be driven by hypotheses that emphasize the role of social contex
ts in the doctor's decision behaviour. Some suggestions for future lines of
research are outlined.