PubMed · 9809708
More physicians: improved availability or induced demand?
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.
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F Carlsen, J Grytten. 1998. More physicians: improved availability or induced demand?. https://doi.org/10.1002/(sici)1099-1050(199809)7%3A6%3C495%3A%3Aaid-hec368%3E3.0.co%3B2-s
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