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Published on: August 1, 2019
Summary
This study examined theoretical models of physician-induced demand in healthcare. Statistical tests using monopolistic models failed to reject the "no induced demand" hypothesis, suggesting further analysis is needed.
Area of Science:
- Health Economics
- Medical Practice Analysis
Background:
- Physician behavior can influence patient demand for healthcare services.
- Understanding this influence is crucial for healthcare policy and resource allocation.
Purpose of the Study:
- To evaluate theoretical models explaining variable physician activity in shifting patient demand.
- To statistically test the "no induced demand" hypothesis within monopolistic healthcare market models.
Main Methods:
- Analysis of equilibrium models, including competitive and monopolistic behaviors.
- Construction and application of a statistical test for the "no induced demand" hypothesis.
- Examination of disequilibrium models and proposal of alternative specifications.
Main Results:
- The statistical test, using a monopolistic model, did not reject the hypothesis of "no induced demand."
- Analysis of existing disequilibrium models was conducted.
- Alternative specifications for disequilibrium models were proposed.
Conclusions:
- Current theoretical models and statistical tests do not provide evidence for significant physician-induced demand in the studied context.
- Further research with alternative disequilibrium model specifications may be warranted to explore physician influence on demand.
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