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Market conditions and general practitioners’ referrals

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  • Tor Iversen

    ()

  • Ching-to Ma

    ()

Abstract

We study how market conditions in?uence referrals of patients by general practitioners (GPs). We set up a model of GP referral for the Norwegian health care system, where a GP receives capitation payment based on the number of patients in his practice, as well as fee-for-service reimbursements. A GP may accept new patients or close the practice to new patients. We model GPs as partially altruistic, and compete for patients. We show that a GP operating in a more competitive market refers more. To retain patients in his practice, a GP satis?es patients' requests for referrals. Furthermore, a GP who faces patient shortage will refer more often than a GP who has enough patients. More referrals may add to pro?ts from future treatments. Using data of radiology referrals by GPs in Norway, we test and confirm our theory.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10754-011-9101-y
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Bibliographic Info

Article provided by Springer in its journal International Journal of Health Care Finance and Economics.

Volume (Year): 11 (2011)
Issue (Month): 4 (December)
Pages: 245-265

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Handle: RePEc:kap:ijhcfe:v:11:y:2011:i:4:p:245-265

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Web page: http://www.springerlink.com/link.asp?id=106603

Related research

Keywords: Physician; Service motive; Profit motive; Referral; Radiology; D22; H42; I10; I11; I18;

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References

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  17. Propper, Carol & Burgess, Simon & Green, Katherine, 2004. "Does competition between hospitals improve the quality of care?: Hospital death rates and the NHS internal market," Journal of Public Economics, Elsevier, vol. 88(7-8), pages 1247-1272, July.
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Cited by:
  1. Godager, Geir & Iversen, Tor & Albert Ma, Ching-to, 2012. "Competition, Gatekeeping, and Health Care Access," HERO On line Working Paper Series 2012:2, Oslo University, Health Economics Research Programme.

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