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Supplier-induced demand for physiotherapy in the Netherlands
Social Science & Medicine (1982)
|January 1, 1987
Summary
Physiotherapists in the Netherlands adjust service mix based on prices, but don't fully exploit demand manipulation for income. This suggests a balance between revenue and patient care, raising questions about treatment effectiveness.
Area of Science:
- Health Economics
- Behavioral Economics
- Healthcare Management
Background:
- Empirical studies on supplier-induced demand (SID) primarily focus on physician behavior.
- Limited research exists on the economic determinants influencing physiotherapist behavior regarding SID.
Purpose of the Study:
- To investigate the economic factors driving physiotherapist behavior in The Netherlands.
- To analyze how relative prices and income pressures affect service mix and demand manipulation.
Main Methods:
- Time-series analysis of physiotherapist service provision in The Netherlands.
- Economic modeling to assess revenue maximization under production constraints.
Main Results:
- Relative prices significantly incentivize changes in the service mix supplied by physiotherapists.
- Physiotherapists appear not to fully exploit their capacity to increase hourly income through demand manipulation.
- Service choice varies with provider income pressure, indicating a potential trade-off.
Conclusions:
- Physiotherapist behavior aligns with revenue maximization models but suggests a balance between revenue and demand manipulation.
- The findings raise questions about the effectiveness of chosen treatment patterns when influenced by provider income pressures.