The influence of payer mix on electronic prescribing by physicians

Background: Limited studies have examined electronic prescribing (e-prescribing) adoption in physician office practices. Specifically, none have explored the influence of payer mix on e-prescribing adoption among physicians. Purpose: This study examines the impact of practice composition of Medicare, Medicaid, and private insurance on e-prescribing adoption among physicians. Methodology/Approach: Logistic regression was used to analyze data collected from a large-scale information technology-related survey of Florida physicians. Findings: After controlling for practice and physician characteristics, physicians with the highest (odds ratio = 1.67, 95% confidence interval = 1.01-2.78) and above-average (odds ratio [OR] = 1.83,95% confidence interval = 1.04-3.22) volume of Medicare patients were significantly more likely to e-prescribe as compared with those in the low-volume category. No differences in adoption were found across all Medicaid and private insurance practice composition categories. Practice Implications: Our findings support the notion that direct incentives, such as those in the Medicare Modernization Act of 2003, may influence physician adoption of e-prescribing.