1465-7295/asset/cover.gif?v=1&s=61c6ca4cf156b745238701829e914186db5a3112 "Economic Inquiry")
*We thank Tom McGuire, Dean Smith, Kevin Frick, James Baumgardner, and seminar participants at North-western University, the University of Florida, and the American Economic Association meetings for helpful comments and suggestions without implying any responsibility on their parts for remaining errors.
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THE PHYSICIAN LABOR MARKET IN A MANAGED CARE-DOMINATED ENVIRONMENT
Article first published online: 2 JUL 2007
DOI: 10.1111/j.1465-7295.1999.tb01430.x
Additional Information
How to Cite
Hirth, R. A. and Chernew, M. E. (1999), THE PHYSICIAN LABOR MARKET IN A MANAGED CARE-DOMINATED ENVIRONMENT. Economic Inquiry, 37: 282–294. doi: 10.1111/j.1465-7295.1999.tb01430.x
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*We thank Tom McGuire, Dean Smith, Kevin Frick, James Baumgardner, and seminar participants at North-western University, the University of Florida, and the American Economic Association meetings for helpful comments and suggestions without implying any responsibility on their parts for remaining errors.
Publication History
- Issue published online: 2 JUL 2007
- Article first published online: 2 JUL 2007
- Abstract
- Article
- References
- Cited By
The belief that doctors respond to declining demand by treating patients more aggressively has created skepticism about relying on market forces to restructure physician supply. We argue that even if the physician labor market is dysfunctional under fee-for-service incentives, it can perform better as managed care becomes dominant. Our model implies a nonlinear effect of managed care penetration on incomes. Physicians can offset most or all of initial declines in demand, but cannot insulate themselves indefinitely. This may explain the observation that, until recently, the growth of managed care has not been accompanied by large physician income changes. (JEL III, J31)