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Do physicians induce demand for medical services?

T H Rice1, R J Labelle

  • 1University of North Carolina, Chapel Hill.

Journal of Health Politics, Policy and Law
|January 1, 1989
PubMed
Summary
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This critique challenges Feldman and Sloan's conclusions, arguing that evidence supports supplier-induced demand and physician responses to price controls, impacting healthcare policy and research.

Area of Science:

  • Health Economics
  • Medical Policy

Background:

  • Critiques an article by Feldman and Sloan (1988) regarding physician economic behavior.
  • Examines the concepts of supplier-induced demand and physician responses to price controls.

Purpose of the Study:

  • To challenge the conclusions presented by Feldman and Sloan.
  • To re-evaluate the evidence concerning supplier-induced demand and physician responses to economic policies.

Main Methods:

  • Literature critique and re-analysis of existing evidence.
  • Theoretical argumentation on physician-induced demand.

Main Results:

  • Evidence supports the existence of supplier-induced demand.
  • Physicians do generate demand to mitigate the effects of price controls on their income.

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Conclusions:

  • Feldman and Sloan's conclusions are not supported by the evidence.
  • The debate has significant implications for healthcare policy and future research directions.