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Primary physicians’ response to changes in fees

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  • Jostein Grytten
  • Fredrik Carlsen
  • Irene Skau

Abstract

The study examines how the service production of primary physicians in Norway is influenced by changes in fees. The data represent about 2 650 fee-for-service physicians for the years 1995-2000. We constructed a variable that made it possible to estimate income effects of fee changes on service levels. Service production was measured by the number of consultations per physician, the number of laboratory tests per consultation, and the proportion of consultations lasting more than 20 minutes. Our main finding is that fee changes have no income effect on service production. Our results imply that fee regulation can be an effective means of controlling physicians’ income, and therefore government expenditure on primary physician services.
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Suggested Citation

  • Jostein Grytten & Fredrik Carlsen & Irene Skau, 2008. "Primary physicians’ response to changes in fees," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 9(2), pages 117-125, May.
    • Handle: RePEc:spr:eujhec:v:9:y:2008:i:2:p:117-125
    DOI: 10.1007/s10198-007-0049-2
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    9. Grytten, Jostein & Sorensen, Rune, 2003. "Practice variation and physician-specific effects," Journal of Health Economics, Elsevier, vol. 22(3), pages 403-418, May.
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    13. Fredrik Carlsen & Jostein Grytten & Irene Skau, 2003. "Financial incentives and the supply of laboratory tests," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 4(4), pages 279-285, December.
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    Cited by:

    1. Pablo Cos & Enrique Moral-Benito, 2014. "Determinants of health-system efficiency: evidence from OECD countries," International Journal of Health Economics and Management, Springer, vol. 14(1), pages 69-93, March.
    2. Andreassen, Leif & Di Tommaso, Maria Laura & Strøm, Steinar, 2013. "Do medical doctors respond to economic incentives?," Journal of Health Economics, Elsevier, vol. 32(2), pages 392-409.
    3. Siri Munkerud, 2012. "Decision-making in general practice: the effect of financial incentives on the use of laboratory analyses," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 13(2), pages 169-180, April.
    4. Grytten, Jostein & Carlsen, Fredrik & Skau, Irene, 2009. "Services production and patient satisfaction in primary care," Health Policy, Elsevier, vol. 89(3), pages 312-321, March.

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