Efficiency Improvements via Monitoring in Medical Group Practice. Abstract andExecutive Summary of Dissertation

摘要

This dissertation tests the hypothesis that medical partnerships can effectivelyrespond to moral hazard by monitoring their members. While it has long been believed that partnerships are inefficient due to inability to control the opportunism of members, widespread occurrence of this organizational form belies that belief. This project examines the methods used by firms to address potential shirking and the relative effectiveness of these methods. A partnership model is developed which describes the decision-making process in medical groups. The model was inspired by Lee (1990) and Kandel and Lazear (1992), with the structure adapted from that in Gaynor and Gertler (1995). To evaluate the impact of group structure on choice of compensation scheme, surveillance system, and technical efficiency, empirical analysis is performed using data collected by the Medical Group Management Association.