Health Care Management Papers

Document Type

Journal Article

Date of this Version

2009

Publication Source

Journal of Human Capital

Volume

3

Issue

4

Start Page

289

Last Page

322

DOI

10.1086/652900

Abstract

This paper studies patient volume and the severity of case mix as they relate to physicians’ human capital accumulation and pace of technology adoption by exploring a quality signaling mechanism through which physicians build peer reputation. We show that volume building leads physicians to actively manage case mix and find that successful surgeries (particularly for difficult cases) raise future volume, whereas failed surgeries (particularly for easy cases) deplete it. Surgeons with a high patient census and a low‐severity case mix adopt the new technology more rapidly. These findings highlight the role of peer reputation for growing practice size and the timing of technology adoption.

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Date Posted: 27 November 2017

This document has been peer reviewed.