The Impact of Medical Liability Standards on Regional Variations in Physician Behavior: Evidence from the Adoption of National-Standard Rules

I explore the association between regional variations in physician behavior and the geographical scope of malpractice standards of care. I estimate a 30 – 50% reduction in the gap between state and national utilization rates of various treatments and diagnostic procedures following the adoption of a rule requiring physicians to follow national, as opposed to local, standards. These findings suggest that standardization of substantive malpractice...