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Scope-of-Practice Regulation: Physician Control and the Wages of Non-Physician Health-Care Professionals

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  • Sass, Tim R
  • Nichols, Mark W

Abstract

We analyze the impact of licensing statutes that limit physician control over non-physician health-care providers. Contrary to the standard "capture" theory of regulation, we find that physical therapists have devoted considerable effort to obtain passage of laws that ultimately result in lower wages. This seemingly perverse result is robust across different data sets and various specifications. There is limited evidence to suggest that some physical therapists who treat patients without a physician's referral benefit at the expense of other therapists. However, it seems that non-monetary rewards associated with professional independence are the primary benefit to therapists from elimination of physician control. Copyright 1996 by Kluwer Academic Publishers

Suggested Citation

  • Sass, Tim R & Nichols, Mark W, 1996. "Scope-of-Practice Regulation: Physician Control and the Wages of Non-Physician Health-Care Professionals," Journal of Regulatory Economics, Springer, vol. 9(1), pages 61-81, January.
  • Handle: RePEc:kap:regeco:v:9:y:1996:i:1:p:61-81
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    Cited by:

    1. Stange, Kevin, 2014. "How does provider supply and regulation influence health care markets? Evidence from nurse practitioners and physician assistants," Journal of Health Economics, Elsevier, vol. 33(C), pages 1-27.
    2. Morris M. Kleiner & Allison Marier & Kyoung Won Park & Coady Wing, 2016. "Relaxing Occupational Licensing Requirements: Analyzing Wages and Prices for a Medical Service," Journal of Law and Economics, University of Chicago Press, vol. 59(2), pages 261-291.
    3. Michael Dueker & Ada Jacox & David Kalist & Stephen Spurr, 2005. "The Practice Boundaries of Advanced Practice Nurses: An Economic and Legal Analysis," Journal of Regulatory Economics, Springer, vol. 27(3), pages 309-330, January.
    4. John J. Perry, 2009. "The Rise And Impact Of Nurse Practitioners And Physician Assistants On Their Own And Cross-Occupation Incomes," Contemporary Economic Policy, Western Economic Association International, vol. 27(4), pages 491-511, October.
    5. Till Bärnighausen & David E. Bloom, 2009. "Changing Research Perspectives on the Global Health Workforce," NBER Working Papers 15168, National Bureau of Economic Research, Inc.

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