Abstract

This article presents an analysis of the effects restructuring in the health care sector is likely to have on the economic conditions of black physicians. The model presented of the physicians’ services market is one in which black physicians, because of perceived quality differences and patient preferences, are relegated to servicing the lowest income clients and those with the lowest quality insurance. It is argued that the physician surplus, the growth in the uninsured, and the increasing competition by large group practices, outpatient-care facilities, and HMOs will place additional pressure on black physicians.

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