Limits...
Setting physicians' prices in FFS medicare: an economic perspective.

Dowd B, Feldman R, Nyman J, Town B - Health Care Financ Rev (2006)

Bottom Line: Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model.An important objective in other policy settings is economically efficient distribution of services.We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

View Article: PubMed Central - PubMed

Affiliation: Division of Health, School of Public Health, University of Minnesota, Minneapolis, 55455, USA. dowdx001@umn.edu

ABSTRACT
Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model. Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets. An important objective in other policy settings is economically efficient distribution of services. We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

Show MeSH
Model of the Market for Physicians' Services Without Insurance
© Copyright Policy
Related In: Results  -  Collection


getmorefigures.php?uid=PMC4194984&req=5

f1-hcfr-28-2-097: Model of the Market for Physicians' Services Without Insurance

Mentions: Figure 1 shows the simplest competitive market for physician services. In this simplest model, there is no insurance so consumers pay out-of-pocket expenses for physician services. At the competitive equilibrium price (PC) the amount of services demanded by consumers equals the amount of services that providers are willing to supply (QE). Total expenditures for services are the product of PC times QE.


Setting physicians' prices in FFS medicare: an economic perspective.

Dowd B, Feldman R, Nyman J, Town B - Health Care Financ Rev (2006)

Model of the Market for Physicians' Services Without Insurance
© Copyright Policy
Related In: Results  -  Collection

Show All Figures
getmorefigures.php?uid=PMC4194984&req=5

f1-hcfr-28-2-097: Model of the Market for Physicians' Services Without Insurance
Mentions: Figure 1 shows the simplest competitive market for physician services. In this simplest model, there is no insurance so consumers pay out-of-pocket expenses for physician services. At the competitive equilibrium price (PC) the amount of services demanded by consumers equals the amount of services that providers are willing to supply (QE). Total expenditures for services are the product of PC times QE.

Bottom Line: Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model.An important objective in other policy settings is economically efficient distribution of services.We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

View Article: PubMed Central - PubMed

Affiliation: Division of Health, School of Public Health, University of Minnesota, Minneapolis, 55455, USA. dowdx001@umn.edu

ABSTRACT
Recent policy discussions by the Medicare Payment Advisory Commission (MedPAC) regarding physician prices in the traditional fee-for-service (FFS) Medicare Program reflect movement toward a market pricing model. Earlier objectives such as sustainable levels of spending have given way to concerns over the relationship between fees and actual costs, access to care, and the importance of demand and supply in local markets. An important objective in other policy settings is economically efficient distribution of services. We explain the meaning of economic efficiency for Medicare physician prices and explore difficulties one might encounter in pursuing economic efficiency, as well as the cost of not pursuing it.

Show MeSH