Physician-induced demand for medical-care - irish general-practitioners

Abstract

Abstract: In a cross-section study based on a national household sample survey, return visits with general practitioners (GPs) vary with the ratio of GPs to population. Thus, higher physician supply, which by itself would depress physician incomes, is compensated for by higher utilisation, in the form of increased return visits. Return visits also vary inversely with the regional ratio to population of low-income persons with free GP care. These results suggest that some demand for GP services is induced by the GPs themselves, for self-interested economic reasons. Similar studies have produced similar results in other countries with fee-for-service methods of remunerating physicians.