Chapter 12 Notes for ECON

Chapter 12 Notes for ECON - Licenser: A barrier to Entry?...

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Licenser: A barrier to Entry? Requirements for license Graduate from an accredited medical school Internship or residency at recognized institution Pass a medical school Advantage of license requirements Protect public from incompetent doctors Disadvantage of license requirements higher prices for physicians Could markets monitor physicians Salaries physicians are monitored by employers Changes in malpractice liability encourages monitoring by hospitals For-profit providers have direct financial stake in quality physicians Expanded use of brand names Hickson, Atmeier, and Perrin (1987) Randomized Controlled Trial ½ of physicians paid flat salary ½ of physicians fee-for-service Assigned randomly Physicians paid fee-for-service scheduled more visits for patients (4.9 per year to 3.8) and saw their patients more often (3.6 per year to 2.9) Is the SID hypothesis valid? Older studies relied on aggregate data New studies have more sophisticated models and estimating technique g Growth of managed care has reduced the ability of physician to manipulate demand
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This note was uploaded on 03/21/2010 for the course BUSA 1234 taught by Professor All during the Fall '09 term at UT Arlington.

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Chapter 12 Notes for ECON - Licenser: A barrier to Entry?...

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