Patient sorting and downstream spending: evidence from an information disclosure program

Choosing a physician who can deliver high-quality care at a reasonable cost can improve health outcomes and reduce spending on healthcare. I study a disclosure program that classifies physicians based on quality and cost. I use a regression discontinuity design and find that physicians who score higher on both quality and cost effectiveness see 38% more new patients, and that younger patients are more responsive than older patients. Evaluating claims of patients who switch physicians following physician exit, I find that middle-aged patients experience larger reductions in spending than younger patients when switching to higher-quality, lower-cost physicians.