Physicians

Section II of the book examines physician behavior and treatment decisions, with a focus on how doctors shape health care delivery and spending. We begin in Chapter 7 with the structure of U.S. health care delivery and the physician’s role within it, highlighting persistent variation in utilization across and within markets. Chapter 8 introduces the concept of physician agency, emphasizing how asymmetric information and incentives can drive a wedge between a patient’s ideal and actual care. In Chapter 9, we consider how payment models—from fee-for-service to capitation—alter these dynamics. Chapters 10 and 11 then turn to other determinants of practice patterns, including learning, training, and the practice environment.