Supply in health care services-physician services

Supply of Physician Services Supply of Physician Services The supply of physicians is to fluctuations occasioned by retirements, enrollments in medical schools, and arrival of international medical graduates. The projection of future physician supply and demand informs stakeholders, as well as policy makers on the health care workforce implication of anticipated changes within the health care environment. Studies have demonstrated that both pecuniary and non-pecuniary factors impact on physicians’ labor supply decisions. The paper explores the factors directing he supply curve of physician services.
The supply of physician services can be influenced by factors such as the price charged on physician services and the cost related to the production of those services. These factors may be influenced by the number of physicians, the number of hours that the physicians work, the capital and equipment available, the inputs and expenses considered critical in the provision of physician services. The supply of physicians is unique in the sense that it can be influenced by the level to which physicians delegate tasks influences the quantity, type and cost of physician services available (Feldstein, 2012). Medical education is a core determinant of the number of physician, which also influences the supply of physician services. Furthermore, government policies, on the supply side, have broadened the supply of physicians by availing subsidies for the construction of new medical schools, including provision of government loans and scholarships (Golden, Hannam, & Hyatt, 2012).
The supply of physician services is inelastic since the supply of physicians is not highly responsive to a shift in price since there is only a small amount of response to a shift in price (Gwartney, 2011). For instance, in the event that the earnings of physicians rise from $200 to $300 per hour, only some increase will be registered within the quantity of services that physicians avail. This draws from the assumption that physicians ate price-taking utility maximizers, which indicate that physicians supply curve remains positively sloped. Countries can adopt diverse policy instruments to impact on the supply of physicians such as education and training policies, policies impacting on retention and retirement, and migration policies. Similarly, it is essential to note that factors such high income and job satisfaction influence the supply of physicians.
Feldstein, P. J. (2012). Health care economics. Clifton Park, NY: Delmar Cengage Learning.
Golden, B. R., Hannam, R., & Hyatt, D. (2012). Managing the supply of physicians’ services through intelligent incentives. CMAJ, 184 (1): 77-80.
Gwartney, J. D. (2011). Macroeconomics: Private and public choice. Australia: South-Western Cengage Learning.