Can We Trust Online Physician Ratings? Evidence from Cardiac Surgeons in Florida

43 Pages Posted: 8 Oct 2014

See all articles by Susan F. Lu

Susan F. Lu

Purdue University - Krannert School of Management

Huaxia Rui

University of Rochester - Simon Business School

Multiple version iconThere are 2 versions of this paper

Date Written: September 30, 2014

Abstract

Despite heated debate about the pros and cons of online physician ratings, very little systematic work examines the correlation between physicians’ online ratings and their actual medical performance. Using patients' ratings of physicians at the RateMDs website and the Florida Hospital Discharge data, we investigate whether online ratings reflect physicians' medical performance by means of a two-stage model that takes into account patients' ratings based selection of cardiac surgeons. Estimation results show that five-star surgeons are associated with significantly lower mortality rates and are more likely to be selected by sicker patients compared with lower-rated surgeons. In contrast, not accounting for patients' rating-based selection leads to the opposite outcome: patients treated by five-star surgeons had higher mortality rates than patients treated by surgeons rated below five stars. Further, we find that patients are not naïve: they know how to use different dimensions of online rating information when choosing a surgeon. Our findings suggest that we can trust online physician ratings, at least of cardiac surgeons.

Keywords: word of mouth, physician ratings, patient selection, quality disclosure

JEL Classification: L15, I1

Suggested Citation

Lu, Susan Feng and Rui, Huaxia, Can We Trust Online Physician Ratings? Evidence from Cardiac Surgeons in Florida (September 30, 2014). NET Institute Working Paper No. 14-01, Simon Business School Working Paper No. FR 14-19, Available at SSRN: https://ssrn.com/abstract=2506292 or http://dx.doi.org/10.2139/ssrn.2506292

Susan Feng Lu (Contact Author)

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States

HOME PAGE: http://https://sites.google.com/site/susanluhome/home

Huaxia Rui

University of Rochester - Simon Business School ( email )

Rochester, NY 14627
United States

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