This article examines institutional differences in therapeutic decision making in the Coronary Artery Surgery Study (CASS). The initial decision to use medical therapy or coronary artery bypass surgery for coronary artery disease is studied. Data from the CASS registry and a survey of CASS principal investigators were used to examine the effects of institutional characteristics, individual physician characteristics, and decision making responsibility on the recommended therapy, the actual therapy, and the ratio of the observed to expected number of surgeries. The results indicated that the experience and involvement of the surgeon in the decision making process were related to actual and recommended rates of surgery. The percentage of urgent transfers from other hospitals and the percentage of surgical referrals to outside hospitals were related to the ratio of the observed to expected numbers of surgery, an adjusted rate of surgery. A major conclusion of this study is that despite the effects of certain institutional constructs, scientific criteria in the form of clinical and angiographic data are the most important determinants of whether a patient receives coronary artery bypass surgery.