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Physicians and medical innovation.

C E Frost

    Social Science & Medicine (1982)
    |January 1, 1985
    PubMed
    Summary
    This summary is machine-generated.

    This study introduces knowledge as a key factor in microeconomic models of physician behavior, offering a more determinate approach than

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    Area of Science:

    • Health Economics
    • Medical Decision Making
    • Behavioral Economics

    Background:

    • Existing models of physician behavior often use indeterminate variables like 'discretionary influence' or 'quality of care'.
    • Previous economic models of physician behavior have limitations in capturing key behavioral aspects.
    • Understanding physician behavior is crucial for healthcare policy and resource allocation.

    Purpose of the Study:

    • To propose a microeconomic model of physician behavior that incorporates knowledge as a distinct element.
    • To identify key factors influencing a physician's treatment decisions for patients.
    • To explore the role of medical knowledge and technological advancements in healthcare demand.

    Main Methods:

    • Developed a microeconomic framework with physician knowledge as a core component.

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  • Differentiated the knowledge element into prior probabilities (local knowledge) and likelihood functions (medical training).
  • Analyzed factors influencing physician treatment demand: objective function, knowledge, and resource availability.

    • Main Results:

    • Modeling physician behavior using knowledge constraints offers more determinate properties than alternative variables.
    • Physician knowledge, encompassing local insights and formal training, significantly impacts treatment decisions.
    • Technological advancements ('technological imperative') are a major driver of increased hospital care demand.

    Conclusions:

    • Incorporating knowledge into physician behavior models provides a more robust analytical tool.
    • The model generates testable hypotheses regarding the adoption of medical innovations by physicians.
    • Policy instruments for optimizing innovation diffusion in healthcare require a fundamental understanding of physician knowledge.