Physician numbers as a driver of provincial government health spending in Canadian health policy
Physician spending is one of the fastest growing Canadian public sector health categories of recent years but despite their recent growth physician numbers are a relatively small contributor to the increases in total provincial government health expenditure. Regression models of the determinants of provincial government health spending are estimated and show physician numbers are a positive and significant driver of provincial government health care spending after controlling for other factors though the overall contribution is relatively small. From 1975 to 2009, the increases in physician numbers accounted for a range of 3.2–13.3 percent of the increase in real per capita total provincial government health expenditures ranging from a low of 1.9 to 7.6 percent for Manitoba to a high of 5.3 to 18.3 percent for Quebec. These are modest contributions to total health spending but vary more substantially across provinces when hospital and physician spending alone are considered particularly for Quebec and British Columbia. Nevertheless, these results suggest that physician numbers alone are a modest policy concern when it comes to restraining health costs and other factors such as utilization and fees are more important.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David M. Cutler & Mark McClellan & Joseph P. Newhouse & Dahlia Remler, 1998. "Are Medical Prices Declining? Evidence From Heart Attack Treatments," The Quarterly Journal of Economics, MIT Press, vol. 113(4), pages 991-1024, November.
- Eric Delattre & Brigitte Dormont, 2003. "Fixed fees and physician-induced demand: A panel data study on French physicians," Health Economics, John Wiley & Sons, Ltd., vol. 12(9), pages 741-754.
- Abdelhak Nassiri & Lise Rochaix, 2006. "Revisiting physicians' financial incentives in Quebec: a panel system approach," Health Economics, John Wiley & Sons, Ltd., vol. 15(1), pages 49-64.
- Joakim Westerlund, 2007.
"Testing for Error Correction in Panel Data,"
Oxford Bulletin of Economics and Statistics,
Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
- Sarma, Sisira & Thind, Amardeep & Chu, Man-Kee, 2011. "Do new cohorts of family physicians work less compared to their older predecessors? The evidence from Canada," Social Science & Medicine, Elsevier, vol. 72(12), pages 2049-2058, June.
- Parkin, David & McGuire, Alistair & Yule, Brian, 1987. "Aggregate health care expenditures and national income : Is health care a luxury good?," Journal of Health Economics, Elsevier, vol. 6(2), pages 109-127, June.
- Christopher Ferrall & Allan W. Gregory & William Tholl, 1998. "Endogenous Work Hours and Practice Patterns of Canadian Physicians," Canadian Journal of Economics, Canadian Economics Association, vol. 31(1), pages 1-27, February.
- Thomas F. Crossley & Jeremiah Hurley & Sung-Hee Jeon, 2009.
"Physician labour supply in Canada: a cohort analysis,"
John Wiley & Sons, Ltd., vol. 18(4), pages 437-456.
- Thomas F. Crossley & Jeremiah Hurley & Sung-Hee Jeon, 2007. "Physician Labour Supply in Canada: a Cohort Analysis," Centre for Health Economics and Policy Analysis Working Paper Series 2006-04, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
- Thomas F. Crossley, Jeremiah Hurley, and Sung-Hee Jeon, 2006. "Physician Labour Supply in Canada: a Cohort Analysis," Department of Economics Working Papers 2006-02, McMaster University.
- Thomas F. Crossley & Jeremiah Hurley & Sung-Hee Jeon, 2006. "Physician Labour Supply in Canada: a Cohort Analysis," Social and Economic Dimensions of an Aging Population Research Papers 162, McMaster University.
- Thomas F. Crossley & Jeremiah Hurley & Sung-Hee Jeon, 2006. "Physician Labour Supply in Canada: a Cohort Analysis," Quantitative Studies in Economics and Population Research Reports 410, McMaster University.
- Filippini, Massimo & Masiero, Giuliano & Moschetti, Karine, 2006. "Socioeconomic determinants of regional differences in outpatient antibiotic consumption: Evidence from Switzerland," Health Policy, Elsevier, vol. 78(1), pages 77-92, August.
- Blake, John T. & Carter, Michael W., 2003. "Physician and hospital funding options in a public system with decreasing resources," Socio-Economic Planning Sciences, Elsevier, vol. 37(1), pages 45-68, March.
- Denton, Frank T. & Gafni, Amiram & Spencer, Byron G. & Stoddart, Greg L., 1983. "Potential savings from the adoption of nurse practitioner technology in the Canadian health care system+," Socio-Economic Planning Sciences, Elsevier, vol. 17(4), pages 199-209.
- Livio Di Matteo, 2010. "The sustainability of public health expenditures: evidence from the Canadian federation," The European Journal of Health Economics, Springer, vol. 11(6), pages 569-584, December.
- Stuart Landon & Melville L. McMillan & Vijay Muralidharan & Mark Parsons, 2006. "Does Health-Care Spending Crowd Out Other Provincial Government Expenditures?," Canadian Public Policy, University of Toronto Press, vol. 32(2), pages 121-142, June.
- Luca Crivelli & Massimo Filippini & Ilaria Mosca, 2006. "Federalism and regional health care expenditures: an empirical analysis for the Swiss cantons," Health Economics, John Wiley & Sons, Ltd., vol. 15(5), pages 535-541.
- Barer, M.L. & Evans, R.G. & Labelle, R.J., 1988. "Fee Controls as Cost Control: Tales from the Frozen North," Centre for Health Services and Policy Research 88:12r, University of British Columbia - Centre for Health Services and Policy Research..
- Sung-Hee Jeon & Jeremiah Hurley, 2010. "Physician Resource Planning in Canada: The Need for a Stronger Behavioural Foundation," Canadian Public Policy, University of Toronto Press, vol. 36(3), pages 359-375, September.
- Seshamani, Meena & Gray, Alastair M., 2004. "A longitudinal study of the effects of age and time to death on hospital costs," Journal of Health Economics, Elsevier, vol. 23(2), pages 217-235, March.
- Gerdtham, Ulf-G. & Sogaard, Jes & Andersson, Fredrik & Jonsson, Bengt, 1992. "An econometric analysis of health care expenditure: A cross-section study of the OECD countries," Journal of Health Economics, Elsevier, vol. 11(1), pages 63-84, May.
- Gerdtham, Ulf-G. & Jonsson, Bengt, 2000. "International comparisons of health expenditure: Theory, data and econometric analysis," Handbook of Health Economics, in: A. J. Culyer & J. P. Newhouse (ed.), Handbook of Health Economics, edition 1, volume 1, chapter 1, pages 11-53 Elsevier.
- Alfons Palangkaraya & Jongsay Yong, 2009. "Population ageing and its implications on aggregate health care demand: empirical evidence from 22 OECD countries," International Journal of Health Care Finance and Economics, Springer, vol. 9(4), pages 391-402, December.
- Sarma, Sisira & Devlin, Rose Anne & Belhadji, Bachir & Thind, Amardeep, 2010. "Does the way physicians are paid influence the way they practice? The case of Canadian family physicians' work activity," Health Policy, Elsevier, vol. 98(2-3), pages 203-217, December.
- Hitiris, Theo & Posnett, John, 1992. "The determinants and effects of health expenditure in developed countries," Journal of Health Economics, Elsevier, vol. 11(2), pages 173-181, August.
- Di Matteo, Livio & Di Matteo, Rosanna, 1998. "Evidence on the determinants of Canadian provincial government health expenditures: 1965-1991," Journal of Health Economics, Elsevier, vol. 17(2), pages 211-228, April.
- Pedro Pita Barros, 1998. "The black box of health care expenditure growth determinants," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 533-544.
When requesting a correction, please mention this item's handle: RePEc:eee:hepoli:v:115:y:2014:i:1:p:18-35. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)or () The email address of this maintainer does not seem to be valid anymore. Please ask to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.