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Market conditions and general practitioners’ referrals

  • Tor Iversen

    ()

  • Ching-to Ma

    ()

We study how market conditions influence 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 satisfies 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 profits from future treatments. Using data of radiology referrals by GPs in Norway, we test and confirm our theory.

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File URL: http://hdl.handle.net/10.1007/s10754-011-9101-y
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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
Contact details of provider: Web page: http://www.springerlink.com/link.asp?id=106603

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