The short- and long-run effects of medical malpractice lawsuits on medical spending and hospital operations in China

Gordon Liu; Junjian Yi; Ye Yuan; Shaoyang Zhao

The short- and long-run effects of medical malpractice lawsuits on medical spending and hospital operations in China

Citation:

Gordon Liu; Junjian Yi; Ye Yuan; Shaoyang Zhao. 2023. “The Short- and Long-Run Effects of Medical Malpractice Lawsuits on Medical Spending and Hospital Operations in China.” Journal of Comparative Economics. 访问链接

摘要:

China is experiencing a surge in medical malpractice lawsuits. Using administrative hospital panel data, this paper investigates both short- and long-run impacts of medical malpractice lawsuits on patient medical spending and hospital operations. We find that after the occurrence of an additional malpractice lawsuit in a hospital, total medical spending per patient visit increases by 2.8% in the current year and by as much as 8.8% in the long run. This increase is mainly driven by spending on prescription drugs and diagnostic tests. In response, hospitals invest more in medical devices and procure more drugs. We find little evidence of changes in patient outcomes. Our findings show that the surge of medical malpractice lawsuits leads to defensive medicine and fuels the secular growth of medical spending in China.

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YUAN Ye (袁野)

北京大学经济学院助理教授

The short- and long-run effects of medical malpractice lawsuits on medical spending and hospital operations in China

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