The Choice of Employment Arrangement in the Market for Hospitalist Services
AbstractHospitalists specialize in the management of patients who are hospitalized. Despite a uniformity of work sites, educational backgrounds, and tasks, however, newly available survey data from the American Hospital Association and the Society of Hospital Medicine reveal substantial diversity in employment arrangements. We reconcile these observations by noting that the two principal players on the health care continuum—primary care physicians who refer their patients and hospitals who admit them—have strong but differing motives for using hospitalists. We show how strategic interaction between the two players may give rise to multiple equilibria in which either the primary care physician group or the hospital ends up being the sole employer of hospitalists in a given market. Over time, the growing infrequency of hospitalization and variation in the cost of setting up a hospitalist program may explain the shifting predominance of different employment arrangements.
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Bibliographic InfoArticle provided by Southern Economic Association in its journal Southern Economic Journal.
Volume (Year): 73 (2007)
Issue (Month): 3 (January)
Find related papers by JEL classification:
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J44 - Labor and Demographic Economics - - Particular Labor Markets - - - Professional Labor Markets and Occupations
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- Cebula, Richard, 2010. "Effects of Health Insurance and Medical Care Inflation on Voluntary Enlistment in the Army: An Empirical Study in the United States," MPRA Paper 51246, University Library of Munich, Germany.
- Guy David & Lorens A. Helmchen & Robert A. Henderson, 2009. "Does advanced medical technology encourage hospitalist use and their direct employment by hospitals?," Health Economics, John Wiley & Sons, Ltd., vol. 18(2), pages 237-247.
- Cebula, Richard, 2007. "Small Firm Size and Health Insurance: A Private Enterprise Perspective," MPRA Paper 50939, University Library of Munich, Germany, revised 10 Apr 2007.
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