Journal of Empirical Legal Studies

Effect of financial incentives on hospital-cardiologist integration and cardiac test location
Yuan AY, Black B, Viragh T, Magid DJ, Luo Q and Moghtaderi A
Starting around 2006, the Centers for Medicare and Medicaid Services (CMS) progressively reduced Medicare Fee-for-Service (M-FFS) payments for the principal noninvasive cardiac tests, when performed in a cardiologist office (Office), yet kept payments flat to increasing for the same tests, performed in the hospital-based outpatient (HBO) setting. This produced a growing gap between HBO and Office payments for the same tests, and thus an incentive for hospitals to acquire cardiology practices in order to move cardiac tests to the HBO location and capture the HBO/Office payment differential. We use difference-in-differences analysis, in which we compare national M-FFS trends in cardiac test location to those for a control group of several large, integrated Medicare Advantage (M-Adv) health systems over 2005-2015, which were not affected by these reimbursement changes, and provide evidence that these reimbursement changes led to a large shift in testing from Office to HBO. This shift was concurrent with a sharp rise in hospital-cardiologist integration. The rise in integration and the proportion of testing in HBO varied greatly across states. Independent practice remains viable in very large states, but is endangered in many states, and is all but extinct in a growing number of states.
A Faustian Bargain? Rethinking the Role of Debt in Law Students' Career Choices
Boutcher SA, Houle JN, Kounovksy AR and Seron C
Despite the absence of strong empirical evidence to support the relationship, legal scholars have long argued that a model of financing legal education through student debt makes it difficult, if not impossible, for most students to take seriously a career path in Government and Public Interest law (GPI), where salaries are generally lower than private, corporate practice. Drawing from a multi-wave, panel survey of law students, we take advantage of a unique tuition remission intervention that occurred at the founding of UCI Law, resulting in a natural, quasi-experiment. Using OLS regression and an instrumental variables approach, we ask whether law student debt influences the likelihood that students (1) will launch their careers in the GPI and (2) aspire to the GPI sector five years after graduation. We find little to no evidence that student debt is a barrier to a graduate's decision to take a position in the GPI sector at career launch or that debt is a factor in a graduate's career aspirations at UCI law school during the study period. These counterintuitive findings provoke new questions about our understanding of debt in the context of legal education and the types of interventions that might facilitate greater entry into the public sector.
Damage Caps and Defensive Medicine: Reexamination with Patient-Level Data
Moghtaderi A, Farmer S and Black B
Physicians often claim that they practice "defensive medicine," including ordering extra imaging and laboratory tests, due to fear of malpractice liability. Caps on noneconomic damages are the principal proposed remedy. Do these caps in fact reduce testing, overall health-care spending, or both? We study the effects of "third-wave" damage caps, adopted in the 2000s, on specific areas that are expected to be sensitive to med mal risk: imaging rates, cardiac interventions, and lab and radiology spending, using patient-level data, with extensive fixed effects and patient-level covariates. We find heterogeneous effects. Rates for the principal imaging tests , as does Medicare Part B spending on laboratory and radiology tests. In contrast, cardiac intervention rates (left-heart catheterization, stenting, and bypass surgery) do not rise (and likely fall). We find some evidence that overall Medicare Part B rises, but variable results for Part A spending. We find no evidence that caps affect mortality.
Rational Choice and Developmental Influences on Recidivism Among Adolescent Felony Offenders
Fagan J and Piquero AR
Recent case law and social science both have claimed that the developmental limitations of adolescents affect their capacity for control and decision making with respect to crime, diminishing their culpability and reducing their exposure to punishment. Social science has focused on two concurrent adolescent developmental influences: the internalization of legal rules and norms that regulate social and antisocial behaviors, and the development of rationality to frame behavioral choices and decisions. The interaction of these two developmental processes, and the identification of one domain of socialization and development as the primary source of motivation or restraint in adolescence, is the focus of this article. Accordingly, we combine rational choice and legal socialization frameworks into an integrated, developmental model of criminality. We test this framework in a large sample of adolescent felony offenders who have been interviewed at six-month intervals for two years. Using hierarchical and growth curve models, we show that both legal socialization and rational choice factors influence patterns of criminal offending over time. When punishment risks and costs are salient, crime rates are lower over time. We show that procedural justice is a significant antecedent of legal socialization, but not of rational choice. We also show that both mental health and developmental maturity moderate the effects of perceived crime risks and costs on criminal offending.