Incorporating Statistical Uncertainty in the Use of Physician Cost Profiles

Authors

John L. Adams PhD, Rand Corporation
Elizabeth A. McGlynn PhD, Rand Corporation
J. William Thomas PhD, University of Southern Maine
Ateev Mehrotra MD, MPH, Rand Corporation

Document Type

Report

Publication Date

3-1-2010

Keywords

Cutler, Population Health and Health Policy

Publication Title

BMC Health Services Research

Abstract

Physician cost profiles (also called efficiency or economic profiles) compare the costs of care provided by a physician to his or her peers. These profiles are increasingly being used as the basis for policy applications such as tiered physician networks. Tiers (low, average, high cost) are currently defined by health plans based on percentile cut-offs which do not account for statistical uncertainty. In this paper we compare the percentile cut-off method to another method, using statistical testing, for identifying high-cost or low-cost physicians.

Recommended Citation

Adams, J. L., McGlynn, E. A., Thomas, J. W., & Mehrotra, A. (2010). Incorporating statistical uncertainty in the use of physician cost profiles. BMC Health Services Research, 10, 57.