More physicians: improved availability or induced demand?
✍ Scribed by Fredrik Carlsen; Jostein Grytten
- Book ID
- 101276640
- Publisher
- John Wiley and Sons
- Year
- 1998
- Tongue
- English
- Weight
- 125 KB
- Volume
- 7
- Category
- Article
- ISSN
- 1057-9230
No coin nor oath required. For personal study only.
✦ Synopsis
A number of empirical studies have shown that there is a negative association between population:physician ratio and utilization of medical services. However, it is not clear whether this relationship reflects supplier-inducement, the effect of lower prices on patient demand, a supply response to variation in health status, or improved availability. In Norway, patient fees and state reimbursement fees are set centrally. Therefore, the correlation between utilization and population:physician ratio either reflects supplier-inducement, a supply response or an availability effect. We applied a theoretical model which distinguished between an inducement and an availability effect. The model was implemented on a cross-sectional data set which contained information about patient visits and laboratory tests for all fee-for-service primary care physicians in Norway. Since population:physician ratio is potentially endogenous, an instrumental variable approach is used. We found no evidence for inducement either for number of visits or for provision of laboratory services.