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Primary Physicians’ Response to Changes in Fees

Author

Listed:
  • Fredrik Carlsen

    () (Department of Economics, Norwegian University of Science and Technology)

  • Jostein Grytten

    () (Dental Faculty, University of Oslo, Norway)

  • Irene Skau

    (Dental Faculty, University of Oslo, Norway)

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.

Suggested Citation

  • Fredrik Carlsen & Jostein Grytten & Irene Skau, 2006. "Primary Physicians’ Response to Changes in Fees," Working Paper Series 8206, Department of Economics, Norwegian University of Science and Technology.
  • Handle: RePEc:nst:samfok:8206
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    File URL: http://www.svt.ntnu.no/iso/WP/2006/18Inntektsendring%20engelsk.pdf
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    References listed on IDEAS

    as
    1. Fredrik Carlsen & Jostein Grytten, 1998. "More physicians: improved availability or induced demand?," Health Economics, John Wiley & Sons, Ltd., vol. 7(6), pages 495-508.
    2. Canice Prendergast, 1999. "The Provision of Incentives in Firms," Journal of Economic Literature, American Economic Association, vol. 37(1), pages 7-63, March.
    3. Jeremiah Hurley & Roberta Labelle, 1995. "Relative fees and the utilization of physicians' services in Canada," Health Economics, John Wiley & Sons, Ltd., vol. 4(6), pages 419-438, November.
    4. Grytten, Jostein & Carlsen, Fredrik & Sorensen, Rune, 1995. "Supplier inducement in a public health care system," Journal of Health Economics, Elsevier, vol. 14(2), pages 207-229, June.
    5. J Hurley & R Labelle & T Rice, 1990. "The Relationship Between Physician Fees and the Utilization of Medical Services in Ontario," Centre for Health Economics and Policy Analysis Working Paper Series 1990-04, Centre for Health Economics and Policy Analysis (CHEPA), McMaster University, Hamilton, Canada.
    6. Nguyen, Xuan Nguyen, 1996. "Physician volume response to price controls," Health Policy, Elsevier, vol. 35(2), pages 189-204, February.
    7. Rune J. Sørensen & Jostein Grytten, 1999. "Competition and supplier-induced demand in a health care system with fixed fees," Health Economics, John Wiley & Sons, Ltd., vol. 8(6), pages 497-508.
    8. Grytten, Jostein & Sorensen, Rune, 2003. "Practice variation and physician-specific effects," Journal of Health Economics, Elsevier, vol. 22(3), pages 403-418, May.
    9. Jon Gruber & John Kim & Dina Mayzlin, 1998. "Physician Fees and Procedure Intensity: The Case of Cesarean Delivery," NBER Working Papers 6744, National Bureau of Economic Research, Inc.
    10. Sorensen, Rune J. & Grytten, Jostein, 2003. "Service production and contract choice in primary physician services," Health Policy, Elsevier, vol. 66(1), pages 73-93, October.
    11. Jostein Grytten & Fredrik Carlsen & Irene Skau, 2001. "The income effect and supplier induced demand. Evidence from primary physician services in Norway," Applied Economics, Taylor & Francis Journals, vol. 33(11), pages 1455-1467.
    12. repec:aph:ajpbhl:10.2105/ajph.71.4.370_8 is not listed on IDEAS
    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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