Unit 5 Flashcards
how do we analyze physician behaviour
prediction of physical sector reform and provide insights into observed behaviour
why is the physician services market not perfectly competitive
physicians derive market power from the asymmetry of information, and the regulations designed to address informational asymmetry reduce the competitive pressures on physicians
why is medicine a self-regulating profession
because of informational problems
what three elements are included in economic models of physicians and their practices
the objective function, the production function, and a series of constraints
what is the objective of a physician
to include income, leisure, and practicing in a manner consistent with professional ethics
what is incomplete vertical integration
what is the goal of the transactions costs model
it drops the assumption of unitary control and emphasizes the split organization of a hospital
what is local monopoly
what does market concentration represent
the extent to which a small number of hospitals account for a large share of hospital activity in a region
what was created from internal market
a public market for hospital services by creating a purchaser-provider split
what is purchaser-provider split
the separation of the demand for and supply of services
what does the frontier cost estimation represent
the effect and cost associated with different treatment alternatives
what does the non distribution constraint mean
that such organizations are not allowed to distribute profits to stakeholders or employees
what are the effects of a fee increase on the backward bending labor supply curve
it reduces physical labor supply, it increases the desired ratio of non-physician to physician inputs, and it encourages the substitution of non-physician inputs for physician labor
what is suggested by the target income model
that physicians have a target income and they adjust their service activity to achieve their target income
what is the backward bending labor supply curve
the portion of the labor supply curve above W*
what is depicted by the labor supply curve
the numbers of hours a person would work at each wage level
what is a implicit wage
the net income of the practice divided by the number of hours the physician works
what is extra billing
charging a fee above the public reimbursement
what has changed for the type of physicians
there has been a higher proportion of older, and female physicians
what has happened since the supply of primary care physicians has grown
their rate of clinical activity has declined
list a reason for male physicians having a higher activity rate than female physicians
female physicians spend longer with patients causing a lower number of consultant episodes
what are the three distinct elements of the physician services sector
market for physician services, physicians themselves, and physicians practices
why is a fee-for-service system bad for health care providers
they may have a certain incentive to do more drastic procedures
what do A, I, M depend on
level of consumer prices, price of medical services, price of non-physicians inputs, and non-practice income
what does the labor supply curve represent
the number of hours a person would work at each wage level
what is represented from the target income model
that when fees go up, activity goes down; and when fees go down, activity goes up
