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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 summary is machine-generated.

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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.

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.

Related Experiment Videos

  • 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.