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

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

Bottom Line: 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.

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.

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Monopolistic Local Market for Health Care Services with Government-Set Prices
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Related In: Results  -  Collection


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f5-hcfr-28-2-097: Monopolistic Local Market for Health Care Services with Government-Set Prices

Mentions: Figure 5 shows a monopolistic market where demand and marginal revenue are D and MR, respectively. The efficient price is PE with demand QE. However, the profit-maximizing price for the monopolist is P with demand Q.


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

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

Monopolistic Local Market for Health Care Services with Government-Set Prices
© Copyright Policy
Related In: Results  -  Collection

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

f5-hcfr-28-2-097: Monopolistic Local Market for Health Care Services with Government-Set Prices
Mentions: Figure 5 shows a monopolistic market where demand and marginal revenue are D and MR, respectively. The efficient price is PE with demand QE. However, the profit-maximizing price for the monopolist is P with demand Q.

Bottom Line: 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.

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