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?

Solutions

Expert Solution

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

Next > < Previous

Related Solutions

1. Compared to fee-for-service payment, what are the advantages and disadvantages of payment based on diagnosis-related...

1. Compared to fee-for-service payment, what are the advantages and disadvantages of payment based on diagnosis-related groups? 2. What is Medigap insurance? How does the existence of Medigap policies affect the cost of providing medical services to the elderly? Was Mark Pauly correct when he observed that the provision of some insurance might be suboptimal? (See “The Economics of Moral Hazard: Comment,” American Economic Review 58(2), June 1968, 531–538.) 3. If members of a society have transitive preferences, then that...

How can fixed exchange rates lead to balance of Payment Deficits?

1) Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $9,000,000 and the target fee is $850,000.

1) Fixed Price Incentive Fee Calculation. In this fixed price incentive fee contract, the target cost is estimated at $9,000,000 and the target fee is $850,000. The project is over, and the buyer has that the costs were, in fact, $8,000,000. Because the seller's cost came in lower than the estimated costs, the seller shares in the savings: 70% to the buyer and 30% to the seller. The ceiling price is $12,500,000. Calculate the final fee and final priceFee $1,150,000...

Jolly Cleaners offers residential and commercial cleaning services. Clients pay a fixed monthly fee for the service, but can cancel the service at the end of any month.

Jolly Cleaners offers residential and commercial cleaning services. Clients pay a fixed monthly fee for the service, but can cancel the service at the end of any month. In addition to the employees who do the actual cleaning, the firm includes two managers who handle the administrative tasks (human resources, accounting, and so on) and one dispatcher, who assigns the cleaning employees to jobs on a daily basis.On average, residential clients pay $260 per month for cleaning services and the...

The managed care system emerged as the alternative payment and delivery mechanism to traditional fee-for-service indemnity...

The managed care system emerged as the alternative payment and delivery mechanism to traditional fee-for-service indemnity insurance. Discuss how managed care organizations work. What do all managed care organizations have in common?

Explain how implementing ‘Lean thinking’ can lead to a reduction in cost in a manufacturing OR...

Explain how implementing ‘Lean thinking’ can lead to a reduction in cost in a manufacturing OR service operation of your choice (start by briefly characterising the nature of the operation). b) Select TWO of the following Lean tools/techniques, and explain how they might be applied in your chosen operation to improve performance against its operations objectives: • Lean supply chain management • Pull scheduling • Kaizen

How does a fee-for-service system transition to a value-based payment model? Offer specific, descriptive detail to...

How does a fee-for-service system transition to a value-based payment model? Offer specific, descriptive detail to support your responce.

a. Explain how genetic drift can lead to a reduction in the genetic variation within a population.

a. Explain how genetic drift can lead to a reduction in the genetic variation within a population. b. Under what conditions is drift most likely to occur?

Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at 4.38%. Her monthly payment is $20,000. What is the balloon payment for this mortgage after 360 payments are made?

Ann obtains a 30 year Fixed Rate, Constant Payment Mortgage with monthly payments for $4,500,000 at 4.38%. Her monthly payment is $20,000. What is the balloon payment for this mortgage after 360 payments are made?

Fee-for-service and capitation are both discussed in this module. These methods can be analyzed using cost...

Fee-for-service and capitation are both discussed in this module. These methods can be analyzed using cost volume profit analysis. In this discussion, assume the following: A new managed care organization (MCO) is preparing to bid on serving the 1,000 employees of ABC Manufacturing who make an average of 3 medical visits each year. The MCO can hire 1 physician for 350,000 SAR (annually) or can hire a Registered Nurse for 150,000 SAR (annually) and have a physician in attendance one...

Subjects