A large manufacturing firm in your area closes its doors, resulting in an increase in unemployment. You manage a multi-physician primary care practice. About half of your patients are covered by public programs such as Medicare and Medicaid. The other half is covered by their employersâ?? health insurance plan. What effect would you expect the closure to have on:
your volume of business
your revenue per visit
In discussing this, be sure to consider the balance of maintaining a profitable business for your physician-owners with the medical needs of the patients.
It is often claimed that hospitals compete for physicians rather than patients. Assuming this is true, how does it occur and what are the implications in terms of service availability, costs, and market power of the providers and the health insurers? On the other hand, have you seen any evidence to contradict this, even partially?