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Physician practice patterns under hospital rate-setting programs.

S Zuckerman, E R Becker, E K Adams

    JAMA
    |November 9, 1984
    PubMed
    Summary
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    Hospital rate-setting programs may influence physician behavior. Studies show slower physician income growth in states with strict hospital regulations, suggesting a need to consider both sectors for cost containment.

    Area of Science:

    • Health economics
    • Healthcare policy
    • Medical practice management

    Background:

    • Previous research on hospital rate-setting focused on utilization and expenditures.
    • Regulatory programs primarily targeted hospitals, with limited understanding of physician impact.
    • Physicians significantly influence healthcare utilization and costs.

    Purpose of the Study:

    • To analyze the impact of hospital rate-setting programs on physicians.
    • To compare physician incomes, fees, and service utilization in regulated vs. non-regulated states.

    Main Methods:

    • Preliminary analysis using data from 1978 to 1982.
    • Comparative study of states with and without hospital rate regulations.
    • Examination of average physician net incomes, fees, and service utilization.

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    Main Results:

    • Significant differences observed between states with and without hospital rate regulations.
    • Average net incomes grew 1.9% slower annually in states with strict hospital regulatory programs.
    • Findings suggest hospital regulation may affect physician financial outcomes.

    Conclusions:

    • Hospital rate-setting programs may indirectly impact physician incomes and practice patterns.
    • A comprehensive evaluation of healthcare cost containment requires considering both hospital and physician sectors.
    • Future research should explore the mechanisms through which hospital regulations influence physician behavior and costs.