« Action bias and the political economy of penalty kicks | Main | Countries as homes »


Feed You can follow this conversation by subscribing to the comment feed for this post.

Misallocation. One of the biggest sources of waste with FFS are highly trained doctors doing easy low skill procedures, or stretching visits out over time etc. Capitation helps de emphasize discrete services but doesn't help reallocate doctors time. We need to reform the payment system in such a way that doctors have an incentive to reduce costs. For example, give nurses more of a role, and dramatically decreased what doctors can collect from handing out sick notes and the like. Make all the high return stuff belong to high value activities. It will then be easier to cap the budget at a lower level.

Livio, it's intriguing that per cap spending on physicians has gone up, even as we are now at a record level of physician supply in the country (and apparently nursing supply as well). My own conjecture is that this speaks to the supply-sensitive nature of healthcare rather than any increase in population morbidity. I think this is also partly explained by the ongoing drift away from the lower-paid specialties like family medicine and geriatrics.

The comments to this entry are closed.

Search this site

  • Google

Blog powered by Typepad