The impact of star physicians on diffusion of a medical technology: the case of laparoscopic gastric bypass surgery.

Using data on all bariatric surgeries performed in the state of Pennsylvania from 1995 through 2007, this article uses logistic and OLS regressions to measure the effect of star physicians and star hospitals on the diffusion of an innovation in bariatric surgery called laparoscopic gastric bypass surgery (LGBS). This article tests for effects at both the hospital and physician level. Compared to hospitals with no star physicians (11 percent adoption rate), those with star physicians on staff show a much higher adoption rate (89 percent). Compared to hospitals that are not classified as star hospitals (13 percent diffusion rate), hospitals with star status show a much higher diffusion rate (87 percent from first quarter 2000 to fourth quarter 2001); being a star hospital raises the likelihood of that hospital diffusing LCBS from 13 percent to 87 percent. At the physician level, the empirical results indicate that star physicians exert positive asymmetric influence on the adoption and utilization rates of nonstars at the same hospital. Stars are those who: (1) graduated from a Top 30 medical school, (2) completed residency at a Top 30 hospital, or (3) are included in a Castle Connolly Top Doctors publication. The results of this article support earlier work on the role of key individuals in technology diffusion. It extends research on medical technology diffusion by testing a new data set for a chronic disease treatment. JEL classifications: D2, I10, I11, L2, O33. D2 production and organizations; L2 firm objectives, organization and behavior; I10 health general; I11 Analysis of health care markets; O33 technological change: choices and consequences; diffusion processes.