The Relative Importance of Physician-Induced Demand in the Demand for Medical Care

Data from the National Medical Care Expenditure Study shed light on competing hypotheses about the physician’s role as agent for the patient or as self-interested provider of medical services. The results suggest that concerns over the expenditure effects from an increasing supply of physicians have been excessive. Concerns about the efffects of the current reimbursement systems, however, appear to be well-founded.

Author(s): Gail R. Wilensky; Louis F. Rossiter

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Volume 61, Issue 2 (pages 252–277)
Published in 1983