Incorporating Statistical Uncertainty in the Use of Physician Cost Profiles
Cutler, Population Health and Health Policy
BMC Health Services Research
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.
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.