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Related Experiment Videos

Attaching prices to decision making in general practice.

D J Heaney1, J G Howie, A M Porter

  • 1Department of General Practice, University of Edinburgh, UK.

Family Practice
|June 1, 1992
PubMed
Summary
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General practitioners' (GPs) referral decisions significantly impact consultation costs. Adjusting referral costs revealed wide variations in spending among GPs, highlighting the need for cost-effective healthcare management.

Area of Science:

  • Health Economics
  • General Practice
  • Healthcare Management

Background:

  • General practitioners (GPs) play a crucial role in healthcare delivery and resource allocation.
  • Understanding the cost implications of clinical decisions is vital for efficient healthcare systems.

Purpose of the Study:

  • To evaluate the cost implications of decisions made by general practitioners during patient consultations.
  • To identify the primary drivers of variable costs in primary care settings.

Main Methods:

  • A 12-month workload study involving 85 general practitioners in South East Scotland.
  • Assigning monetary values to cost-generating decisions, including referrals and prescribing.
  • Analyzing cost variations based on different pricing models for referral activities.

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Main Results:

  • When referral costs were set at one out-patient attendance, most GP consultation costs were within 15-25% of the average.
  • Increasing the price of referral activity led to more pronounced cost variations among doctors.
  • Referral decisions became the most significant factor in variable costs, surpassing prescribing.

Conclusions:

  • GP referral decisions are a major determinant of consultation costs.
  • Variations in referral practices contribute significantly to cost differences between practitioners.
  • Findings have implications for healthcare fund-holding and cost-containment strategies.