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Related Experiment Videos

More physicians: improved availability or induced demand?

F Carlsen1, J Grytten

  • 1Department of Economics, NTNU, Dragvoll, Norway. Fredrik.Carlsen@sv.ntnu.no

Health Economics
|November 11, 1998
PubMed
Summary

This study found no evidence of physician inducement driving medical service utilization in Norway. Physician supply, not inducement, appears to influence patient visits and lab services.

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Area of Science:

  • Health Economics
  • Medical Services Research
  • Public Health Policy

Background:

  • Empirical studies suggest a negative association between population:physician ratio and medical service utilization.
  • The drivers of this association, such as supplier-inducement, price effects, health status, or availability, remain unclear.

Purpose of the Study:

  • To distinguish between supplier-inducement and availability effects on medical service utilization in Norway.
  • To investigate the relationship between population:physician ratio and the number of patient visits and laboratory services.

Main Methods:

  • Applied a theoretical model differentiating inducement and availability effects.
  • Utilized cross-sectional data on patient visits and laboratory tests for Norwegian primary care physicians.
  • Employed an instrumental variable approach to address potential endogeneity of the population:physician ratio.

Main Results:

  • No evidence of supplier-inducement was found to influence the number of patient visits.
  • No evidence of supplier-inducement was found regarding the provision of laboratory services.
  • The study suggests that physician supply, rather than inducement, may explain the observed correlation.

Conclusions:

  • The findings do not support the hypothesis of supplier-inducement in the Norwegian primary care setting.
  • The study contributes to understanding the complex relationship between physician supply and healthcare utilization.

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