Skeleton Notes 3 Flashcards
What is the key idea in health economics thinking about physician labor markets?
Physicians respond to incentives that may not always be in the patient’s best interest
The labor market is plagued by a number of difficult ______ and ________, which lead to ____ prices of healthcare and ____ quality of care
Tradeoffs
market failures
higher
lower
More regulation should lead to higher quality but makes it harder to become a physician (lowering quantity/supply) (FAILURE)
Quality vs. Quantity tradeoff
Government regulation through licensure and self-regulation by the _______________ essentially create a _________ in the labor market (FAILURE)
American Medical Association
Monopoly
Regulations attempt to correct the market failure in information. It difficult for regular people to differentiate between _________ and a ________
A high quality physician
quack
____________ are intended to create better doctors but also create the need for physician to make more post-training to pay back loans. (FAILURE)
Higher costs and barriers
Empirical studies suggest that experience is related to more errors (FAILURE)
July effect
The need for physicians, nurses, and staff to take breaks to avoid errors vs. giving the patient consistent care throughout their hospital stay
The work-hour tradeoff
Patients have a principal interest in their own health but lack information on how to best address specific health problems or diagnose specific conditions
Principal-agent problem
Financial pressures may induce physicians to encourage patients to undergo costlier treatments than are necessary or aligned with standard-of-care. May over-prescribe, or dissuade to protect reputation.
Physician Induced Demand
If physicians are fearful of litigation for being negligent or malpractice, then they may over- utilize testing and services or recommend unnecessary procedures
Patient litigation vs. defensive medicine
What percent of physicians in PA reported practicing defensive medicine
93
The economic term for discrimination stemming from prejudice, stereotypes, cultural biases, or dislikes for a given group. Inefficient, group based disparities, increasing costs for society
Taste-based discrimination (Becker)
Based on scientific evidence that different optimal treatments and interventions should be applied to different groups
Statistical discrimination
Is physician pay the problem with his healthcare expenditures in the U.S. or their influence on other costs? Explain Fuchs argument
No, it is the physicians decisions that effect expenditures, quality, type of care.
