Market Conditions and General Practitioners’ Referrals

HERO WP 2009/8: Authors: Iversen, T., Ma, A., Institute of Health Management and Health Economics, Health Economics Research Programme, Department of Economics, Boston University, University of Oslo (PDF)

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In this study the authors show how market conditions influence referrals of patients by general practitioners (GPs). They set up a model of GP referral for the Norwegian health care system, where a GP receives capitation payment based on the number of patients in his practice, as well as fee-for-service reimbursements. A GP may accept new patients or close the practice to new patients. The authors model GPs as partially altruistic, and compete for patients. They show that a GP operating in a more competitive market refers more. To retain patients in his practice, a GP satisfies patients’ requests for referrals.

Furthermore, a GP who faces patient shortage will refer more often than a GP who has enough patients. More referrals may add to profits from future treatments. Using data of radiology referrals by GPs in Norway, they test and confirm the theory.

ISSN 1890-1735
ISBN 978-82-7756-208-7


Publisert 25. mai 2011 16:21 - Sist endret 7. okt. 2011 13:19