This Article provides an economic analysis of optimal negligence liability for physicians and Managed Care … control over physicians. Finally, we show that it may be optimal to preclude physicians or MCOs from obtaining liability … risks imposed on them, physicians and MCOs do not take optimal care absent sanctions. Markets and contracts do not provide …

The goal of this paper is to examine optimal individual and entity-level liability for negligence when expected … in the context of physician and managed care organization (MCO) liability for medical malpractice. It is shown that the … standard rules for the determination of negligence and damages do not result in an efficient outcome when only physicians are …

information asymmetry: physicians perceive the quality of care they offer perfectly and their patients do not perceive it at all. …