Question

In: Economics

The physician-to-population ratio technique compares the current (or preferred) ratio with the ratio likely to occur in a future period.

The physician-to-population ratio technique compares the current (or preferred) ratio with the ratio likely to occur in a future period. What are some of the shortcomings of this ratio technique? (select all that apply) 

a. The ratio technique fails to consider changes in demand for physician services 

b. The ratio technique fails to consider changes in physician productivity 

c. The ratio technique fails to include providers who offer services that are substitutes for physician services, including those provided by nurse practitioners and physician assistants. 

d. The ratio technique fails to indicate the importance of a divergence in the two ratios being compared, such as the size of a shortage or surplus

Solutions

Expert Solution

Options A, B, D.

  • The physician to population ratio as mentioned above compares the current ratio with a future ratio.
  • But this technique has many shortcomings like the ones given below :
  1. This ratio technique fails to consider various changes in the demand for physician services.
  2. It fails to consider changes in physician productivity.
  3. This ratio technique also fails to indicate the importance of a divergence in the two ratios being compared, such as the size of a shortage or surplus.

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