Persuasion and Welfare in Physician-Industry Relations: Evidence from the Medical Device Industry

Payments from medical device manufacturers to providers may influence physician decisions about device use, possibly leading to overuse or use of more expensive devices. Focusing on high-dollar physician preference devices, this study will examine the pattern of payments from medical device manufacturers to physicians and estimate the causal impact of such payments on use of promoted devices, negotiated prices, and patient outcomes. Findings can help to inform policy discussions about industry payments.