2011
DOI: 10.1007/s10754-011-9101-y
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Market conditions and general practitioners’ referrals

Abstract: We study how market conditions influence referrals of patients by general practitioners (GPs). We 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. We model GPs as partially altruistic, and compete for patients. We show that a GP operating in a more competitive market has a higher referral rate. T… Show more

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Cited by 36 publications
(30 citation statements)
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“…Also empirical studies are not consistent in their finding of an impact of competition on inducing behavior (Delattre and Dormont 2003, Carlson and Grytten 1998, Schaumans 2008) nor on quality of care (Sorensen andGrytten 1999, Pike 2010). Finally, Godager et al (2012) finds negligible or small positive effects on referrals to medical specialists, while Iversen and Ma (2011) find a positive impact of competition on radiology referrals .…”
Section: Introductionmentioning
confidence: 99%
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“…Also empirical studies are not consistent in their finding of an impact of competition on inducing behavior (Delattre and Dormont 2003, Carlson and Grytten 1998, Schaumans 2008) nor on quality of care (Sorensen andGrytten 1999, Pike 2010). Finally, Godager et al (2012) finds negligible or small positive effects on referrals to medical specialists, while Iversen and Ma (2011) find a positive impact of competition on radiology referrals .…”
Section: Introductionmentioning
confidence: 99%
“…This would confirm their health concern and indicates that the GP is taking it seriously. This argument is analogue to Iversen and Ma (2011), where a GP satisfies patients' requests for referrals to compete for patients and to retain them. Furthermore, putting on paper the exact names and quantities of medication to take, even though it can concern over-the-counter (OTC) drugs, can be seen as an extra service towards patients.…”
mentioning
confidence: 99%
“…We employ the results of the referral-to-radiology model in Iversen and Ma (2011). To capture the possible treatment continuations upon a radiology test, a parameter β is utilized to represent the expected benefit from a treatment episode beginning with a radiology referral.…”
Section: A Model With Direct and Indirect Rationingmentioning
confidence: 99%
“…Hence, the GP's optimal referral rate is determined by the interval [β, 1] whereβ is the minimum expected benefit to initiate a referral. According to Iversen and Ma (2011),β is derived from the optimization of the GP's utility function that consists of the three elements. First, even though there is no fee for the referral, a referral may generate fees at a later stage when a patient comes back and the treatment is initiated.…”
Section: A Model With Direct and Indirect Rationingmentioning
confidence: 99%
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