Deck 15: The Market for Physician Manpower

Question 1

Fee-splitting occurs when

A)A specialist splits their charge with the hospital that gives them privileges
B)A specialist splits their charge with the referring physician
C)A physician splits their charge with an assisting nurse
D)A physician splits their charge with the patient's insurance company

Answer 1

B
Fee-splitting is a form of price competition and occurs when,for example,a surgeon splits their fee with the referring physician.

Question 2

In his classic article entitled "Price Discrimination in Medicine," Kessel claimed that control over physicians' pricing behavior was related to

A)Hospital privileges
B)Membership into medical societies
C)Protection of low-income patients
D)Both a and b
E)Both a and c

Answer 2

D
Kessel claimed that control over physicians' pricing behavior was related to the physician's need for hospital privileges and the prerequisite requirement of membership in the county medical society.

Question 3

If a physician can charge every patient a different price according to their willingness to pay,this is called

A)First-degree price discrimination
B)Second-degree price discrimination
C)Third-degree price discrimination
D)Fourth-degree price discrimination

Answer 3

A
If a physician can identify the patient's willingness to pay,they can charge each patient a different price according to their willingness to pay.

Question 4

Which action gave physicians a financial incentive to provide medical services and tests believed to result in better outcomes?

A)Flexner Report
B)Removal of antitrust protection
C)Gies Report
D)P4P

Question 5

Which allowed physicians to begin advertising their services without punishment?

A)Flexner Report
B)Removal of antitrust protection
C)Gies Report
D)P4P

Question 6

What are the advantages of using reexamination instead of additional hours of continual education to recertify physicians?

Question 7

The American Medical Association helped to erect barriers to entry into the profession to

A)Protect patients from poor-quality physicians
B)Prevent the overproduction of physicians
C)Increase physician rents under the guise of patient protection
D)All of the above

Question 8

Which action caused a barrier to entry into dentistry?

A)Flexner Report
B)Removal of antitrust protection
C)Gies Report
D)P4P

Question 9

Which of the following is needed for price discrimination to work?

A)The firm must be able to identify the person's willingness to pay
B)The high-price consumer cannot purchase the service at the low price
C)Both a and b
D)Neither a nor b

Question 10

How is advertising similar to physician inducement?

A)Both activities can generate increased revenue
B)Both activities increase costs
C)Both activities provide no social value
D)Both a and b

Question 11

If a physician cannot charge every patient a different price but can group patients by type and charge each group a different price,this is called

A)First-degree price discrimination
B)Second-degree price discrimination
C)Third-degree price discrimination
D)Fourth-degree price discrimination

Question 12

Education,feedback,and surveillance programs are concerned with:

A)Reducing the amount of inappropriate medical care
B)Increasing patient access to the latest medical technology
C)Retaining a qualified hospital staff
D)The low enrollments in medical school

Question 13

Explain why barriers to entry,such as additional education and licensing,are preferred to malpractice lawsuits to prevent negligent or low-quality physicians from doing harm.

Question 14

Describe how barriers to entry would decrease the quality of care.

Question 15

Explain how barriers to entry can cause static shortages of health professionals.

Question 16

_____________ patients identified as victims of negligence filed a malpractice claim.

A)Less than 2% of
B)Between 2% and 5% of
C)Between 5% and 10% of
D)Greater than 10% of

Question 17

Physicians are believed to charge different patients different prices for the same service because they practice

A)Price discrimination
B)Charity
C)Both a and b
D)Neither a nor b

Question 18

Which action led to a decrease in African-American physicians?

A)Flexner Report
B)Removal of antitrust protection
C)Gies Report
D)P4P

Question 19

Which of the following is not a barrier to entry into the physician profession?

A)High membership fees into medical societies
B)Medical school accreditation
C)Longer residency programs
D)State Licensing

Question 20

Describe how physicians can use price-discrimination to serve both high- and low-income patients.