Regional variation in physician practice pattern: an examination of technical and cost efficiency for treating sinusitis.
OBJECTIVE
An examination of the physician efficiency and resulting cost patterns by region.


METHODS
Virginia Medicaid sinusitis related claims for 1993 were aggregated to physician level (n = 178), and Area Resources File for 1993 was used to identify regions for evaluation.


METHODS
The best practice performance in the usage of five resources (i.e., primary care physician visits, referral services, emergency room visits, prescriptions, laboratory tests) was identified using Data Envelopment Analysis (DEA). Five regions in Virginia were identified according to regional planning to evaluate the variation in efficiency across these regions.


RESULTS
Inefficient physicians consumed significantly more resources and were 48% more costly than efficient physicians. Substantial regional variation was found and mainly attributed to the differences in use of prescriptions and laboratory procedures. Urban-rural discrepancy may explain part of the variation.


CONCLUSIONS
As this study reveals the existence of substantial variation in physician efficiency, actions should be taken to minimize the variation that is more affected by personal and structural factors. For example, information on efficient use of resources and corresponding patient outcomes can be disseminated to the attending physicians. Educational workshops can be conducted to allow sharing of experience between efficient and inefficient physicians. Efforts should also be directed to help inefficient physicians to adhere to practice guidelines.
Pai
C W
CW
Department of Health Administration, Virginia Commonwealth University, Richmond 23298-0203, USA.
Ozcan
Y A
YA
Jiang
H J
HJ
D019985:Benchmarking; D002391:Catchment Area, Health; D002983:Clinical Competence; D003362:Cost-Benefit Analysis; D003627:Data Interpretation, Statistical; D011307:Drug Prescriptions / Q000191:economics / Q000706:statistics & numerical data; D017598:Efficiency, Organizational / Q000706:statistics & numerical data*; D004636:Emergency Service, Hospital / Q000191:economics / Q000706:statistics & numerical data; D006302:Health Services Research; D006801:Humans; D007344:Insurance Claim Reporting / Q000191:economics / Q000706:statistics & numerical data; D008484:Medicaid / Q000191:economics / Q000706:statistics & numerical data; D010818:Practice Patterns, Physicians' / Q000458:organization & administration*; D011320:Primary Health Care / Q000191:economics / Q000706:statistics & numerical data; D012017:Referral and Consultation / Q000191:economics / Q000706:statistics & numerical data; D012040:Regional Health Planning; D012852:Sinusitis / Q000175:diagnosis / Q000188:drug therapy*; D014481:United States; D014768:Virginia