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It's been shown that in the US when you add more doctors into the system the amount of treatment and procedures done scales up. There is an incentive for a doct
by acgourley 16y ago
It's been shown that in the US when you add more doctors into the system the amount of treatment and procedures done scales up. There is an incentive for a doctors office to stay busy, after all.
- yummyfajitas 16y agoThat's hardly surprising. When you increase the supply of a good, consumption of that good goes up.
- acgourley 16y agoAnd I should say, prices don't really go down. This is what happens when the suppliers get to dictate the consumption.
- yummyfajitas 16y agoNot in all cases, only in this particular case. The reason is that consumers have basically zero price elasticity of demand - they don't care since the insurance company is paying. If everyone switched to very high deductible insurance, that situation would change very fast.