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Relative inefficiencies in production between solo and group practice physicians
1Whittemore School of Business and Economics, University of New Hampshire, Durham 03824, USA.
Abstract:
Health economists have hypothesized for some time that physicians produce medical care in an inefficient manner. Further, whether solo or group practice physicians are relatively more inefficient has been a question of particular interest. Theoretical considerations suggest that solo and group practice physicians face different behavioural and production constraints, implying that they may produce care at different levels of efficiency; which is more efficient is an empirical question. We employed stochastic production frontier estimation to address this issue.
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