1. Can fee-for-service payments (as compared to a fixed salary payment) lead to a REDUCTION in...

1. Can fee-for-service payments (as compared to a fixed salary payment) lead to a REDUCTION in the amount of services provided by doctors, as well as an INCREASE in the amount of face-time that doctors spend with patients?

2. From Bhattacharya, “Specialty Selection and Lifetime Returns to Specialization within Medicine”, we know that specialists earn more because: (i) they work longer hours; (ii) they spend more years in residency; (iii) they do fellowship training; and (iv) they have skills that other physicians do not possess. We also know that there are specialist shortages in a number of areas. What are the two competing explanations for these shortages?

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Question : 1. Can fee-for-service payments (as compared to a fixed salary payment) lead to a REDUCTION in the amount of services provided by doctors, as well as an INCREASE in the amount of face-time that doctors spend with patients?

Answer : No. it will increase the amount of services provided by doctors and decrease the amount of face - time that doctors spend with patients. A fix salary means the doctor will get $20000 monthly no matter how many patients he attend in a month and for how much time he attend each patient. Whereas fee - for service will be a motive for the doctor to increase the number of services. The more number of services he provides, the more he earns and maximixes his revenue. Also, he will give less time to each patient as this will let him utilize his time more efficiently to increase the numner of services he can provide.

Hence, fee-for-service payments (as compared to a fixed salary payment) lead to an increase in the amount of services provided by doctors, as well as a reduction in the amount of face - time that doctors spend with patients.

Rahul Sunny answered 1 year ago

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1. Can fee-for-service payments (as compared to a fixed salary payment) lead to a REDUCTION in...

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