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The Induced Productivity Decline Hypothesis: More Physicians, Higher Compensation and Fewer Services
Shoo K Lee1, Sukhy K Mahl2, Brian H Rowe3
1Professor of Paediatrics, Obstetrics & Gynecology, and Public Health, University of Toronto; Director, Maternal-Infant Care Research Centre, Mount Sinai Hospital, Toronto, ON.
Healthcare Policy = Politiques De Sante
|December 13, 2021
Summary
Despite policies to increase physician numbers, access to care remains difficult. Physicians show a "reverse wage-productivity gap," earning more but providing fewer services, impacting healthcare access in Canada.
Area of Science:
- Health Policy
- Health Economics
- Physician Workforce Studies
Background:
- Public concern over physician shortages has driven policies to boost physician supply.
- Despite increased physician numbers, access to medical services in Canada remains a challenge.
Purpose of the Study:
- To investigate the reasons behind the persistent elusiveness of healthcare access.
- To analyze the relationship between physician supply, compensation, and productivity.
Main Methods:
- Analysis of physician supply trends.
- Examination of physician compensation data.
- Assessment of physician productivity and factors influencing its decline.
Main Results:
- Physicians exhibit a
- reverse wage-productivity gap,
- contrary to the trend seen in the general workforce.
- Increased physician compensation correlates with decreased physician productivity.
- More physicians are leading to higher overall healthcare expenditures without a proportional increase in services.
Conclusions:
- Excessive physician compensation may disincentivize productivity.
- Policy interventions are needed to align physician compensation and productivity with service delivery.
- Addressing the reverse wage-productivity gap is crucial for sustainable healthcare expenditures and improved patient access in Canada.
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