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Related Experiment Videos

Testing for physician-induced demand with hypothetical cases.

D Hemenway, D Fallon

    Medical Care
    |April 1, 1985
    PubMed
    Summary
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    Doctors in areas with more physicians may create more healthcare demand. This study used hypothetical cases to show higher physician density correlates with more aggressive treatments, supporting the demand-inducement hypothesis.

    Area of Science:

    • Health Economics
    • Medical Practice Management

    Background:

    • Physician-induced demand is a debated topic in healthcare.
    • Previous studies faced challenges controlling for patient health status differences.

    Purpose of the Study:

    • To investigate the relationship between physician density and treatment aggressiveness.
    • To mitigate confounding factors by using standardized patient cases.

    Main Methods:

    • Physicians were presented with identical, hypothetical medical scenarios.
    • Analysis focused on the correlation between physician density and proposed treatment plans.
    • Controlled for other physician characteristics.

    Main Results:

    • A significant positive correlation was found between physician density and treatment aggressiveness.

    Related Experiment Videos

  • Higher physician density was linked to more assertive medical interventions.

    • Conclusions:

    • The findings support the hypothesis that increased physician supply can lead to greater healthcare demand.
    • This suggests that physician density influences treatment decisions independently of patient health status.