Regulating doctors' fees H. E. Frech III, editor Washington, DC: American enterprise institute press, 1991, 446 pp.

Abstract

This review article examines the issues raised by shifting from the "customary, prevailing, and reasonable" system of paying doctors under Medicare to a fee schedule based on construction of relative resource costs, in particular relative physician work effort. The volume edited by H.E. Frech III provides the basis to consider issues such as whether a relative surplus of specialist physicians exists and if so, whether changes in reimbursement will alleviate the maldistribution. Regulation of physician fees is likely to impact patient access, especially if balance billing is not allowed. Early research on the implementation of the new system indicates that fees have been set far below private insurance rates. Alternatives to price regulation are proposed.