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Consumer satisfaction and supplier induced demand.

https://arctichealth.org/en/permalink/ahliterature195945
Source
J Health Econ. 2000 Sep;19(5):731-53
Publication Type
Article
Date
Sep-2000
Author
F. Carlsen
J. Grytten
Author Affiliation
Department of Economics, Norwegian University of Science and Technology, NTNU, Trondheim, Norway. fredrik.carlsen@svt.ntnu.no
Source
J Health Econ. 2000 Sep;19(5):731-53
Date
Sep-2000
Language
English
Publication Type
Article
Keywords
Consumer Satisfaction - statistics & numerical data
Health Care Rationing
Health Services Accessibility
Health Services Needs and Demand - statistics & numerical data
Humans
Medically underserved area
Models, Statistical
Norway
Physicians, Family - supply & distribution
Abstract
This study examines the relationship between supply of primary physicians and consumer satisfaction with access to, and quality of, primary physician services in Norway. The purpose is to throw light on a long-standing controversy in the literature on supplier inducement (SID): the interpretation of the positive association between physician density and per capita utilization of health services. We find that an increase in the number of physicians leads to improved consumer satisfaction, and that the relationship between satisfaction and physician density exhibits diminishing returns to scale. Our results suggest that policy-makers can compute the socially optimal density of physicians without knowledge about whether SID exists, if one accepts the (controversial) assumption that consumer satisfaction is a valid proxy for patient utility.
PubMed ID
11184802 View in PubMed
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More physicians: improved availability or induced demand?

https://arctichealth.org/en/permalink/ahliterature203997
Source
Health Econ. 1998 Sep;7(6):495-508
Publication Type
Article
Date
Sep-1998
Author
F. Carlsen
J. Grytten
Author Affiliation
Department of Economics, NTNU, Dragvoll, Norway. Fredrik.Carlsen@sv.ntnu.no
Source
Health Econ. 1998 Sep;7(6):495-508
Date
Sep-1998
Language
English
Publication Type
Article
Keywords
Clinical Laboratory Techniques
Contract Services - statistics & numerical data
Cross-Sectional Studies
Fee-for-Service Plans - statistics & numerical data
Fees, Medical - statistics & numerical data
Health Care Surveys - methods
Health services needs and demand - economics - statistics & numerical data
Humans
Models, Econometric
Norway
Office Visits - utilization
Physicians, Family - economics - supply & distribution
Population Density
Regression Analysis
Abstract
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.
PubMed ID
9809708 View in PubMed
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