By Mark V. Pauly
Read Online or Download Doctors and Their Workshops: Economic Models of Physician Behavior (A National Bureau of Economic Research Monograph) PDF
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Additional resources for Doctors and Their Workshops: Economic Models of Physician Behavior (A National Bureau of Economic Research Monograph)
Suppose for the moment that the ratio of average physician office hours to hospital hours is constant across the sample hospitals. D. 143 -- -- 56 136 31 -- -- Opt. D. 8 or better. 76 Opt. 12 Opt. D. 47 Opt. D. 24 Opt. D. 1) == coefficient not significant Full sample Beds>100 Beds 50-100 Governmental Not-for-profit NFP, Beds 50-100 NFP, Beds> 100 Govt. Beds 50-100 Govt. 88 Opt. 50 Actual Ratio + BEDS PERS 38 Chapter Three hour worked at every location, and if prices reflect consumer evaluations, an appropriate measure of the opportunity cost of the time spent per physician per year in the hospital would be average physician net income per year times the average fraction that hospital hours are of total working hours.
Neither of these suppositions seems plausible. 1 indicates that omission of the physician input did not bias estimates of returns to scale. Omission of the physician input does, however, lead to an overestimate of both the effect of personnel on output and of the rate of decrease in productivity over time. Adding the physician input makes only a modest contribution to the explanatory power of the regression, as might be expected given the high multicollinearity of the input variables. 4 shows the result of a similar estimate using disaggregated measures of physician input.
8. The coefficient on physicians is only slightly lower when all county physicians are used than when active staff members are used. When the sample is disaggregated, it becomes apparent that, at least in 1972, there is considerable downward bias in the coefficient estimate for larger hospitals when physician input is measured by the total number of physicians in the county, but there was no bias for smaller hospitals. There does seem to be a little evidence, therefore, that overuse of hospital inputs may be somewhat more severe than indicated above.