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Hospital Cost Inflation and Physician Payment *
Author(s) -
Leveson Irving,
Rodgers Elizabeth
Publication year - 1976
Publication title -
american journal of economics and sociology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.199
H-Index - 38
eISSN - 1536-7150
pISSN - 0002-9246
DOI - 10.1111/j.1536-7150.1976.tb02993.x
Subject(s) - payment , revenue , actuarial science , business , control (management) , inflation (cosmology) , cost control , microform , operations management , economics , accounting , finance , management , physics , theoretical physics , library science , computer science
A bstract . The hypothesis that physicians use control over hospital resources to maximize their net revenue is examined to determine whether such behavior leads to more rapid growth of hospital costs. Theoretical and empirical studies are reviewed and hypotheses are developed regarding the relationship of cost increases to the method of physician payment. Exploratory comparisons of increases in hospital cost per patient day are made between Health Maintenance Organizations with salaried practice and Medical Foundations with fee‐for‐service. The association of international differences in the rate of increase of hospital cost per day with method of physician payment is explored in an Appendix in the microfiche supplement.