Abstract
Most countries have adopted some degree of price regulation of the market for physicians’ services, with the definition of fee schedules and their regular negotiation. However, price regulation may create a gap between the quantity of services a physician would like to offer at the prevailing fee level (ex ante supply) and the quantity which he or she would provide on purely medical grounds on behalf of the patient (ex ante demand). The excess supply is potentially resorbed by additional/more intensive patient care, while excess demand may be resorbed by care rationing. The adjustment mechanism which predominates in the market for physicians’ services clearly is a quantity adjustment.
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