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The pricing behavior of medical groups
The Milbank Memorial Fund Quarterly. Health and Society
|January 1, 1975
Summary
Medical group pricing is influenced by local income and staff utilization. Non-physician managers and non-salaried physicians may lower service prices, suggesting managerial structure impacts costs.
Area of Science:
- Health Economics
- Medical Group Management
- Healthcare Pricing Strategies
Background:
- Understanding factors influencing medical group pricing is crucial for healthcare cost analysis.
- Previous research has explored various economic determinants of healthcare service prices.
Purpose of the Study:
- To empirically test a model of medical group pricing behavior.
- To identify key variables associated with the prices charged by medical groups.
Main Methods:
- A mail survey was conducted to collect data from medical groups in North Carolina.
- An econometric model was used to analyze the collected data on pricing behavior.
Main Results:
- County per capita income and per physician staff utilization positively correlate with medical group prices.
- The presence of a non-physician manager and non-salaried physician remuneration negatively correlate with service prices.
Conclusions:
- Factors such as local economic conditions and operational efficiency significantly influence medical group pricing.
- Managerial structure, including leadership and physician compensation models, plays a role in determining healthcare service costs.