Partnerships, Profit Sharing, and Quality Competition in the Medical Profession |
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Authors: | W David Bradford Robert E Martin |
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Institution: | (1) Center for Health Care Research, Medical University of South Carolina, 135 Rutledge Avenue, Suite 1201, P.O. Box 250550, Charleston, SC, 29425, U.S.A.;(2) Department of Economics, Centre College, Danville, KY, 40422, U.S.A. |
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Abstract: | This paper contains a theoretical model of medicalpartnerships with individual quantity and qualitychoice. The firm selects price, the number ofpartners and profit sharing. The firm encouragesinter-firm quality competition and discouragesintra-firm quality competition through differentialprofit sharing. An empirical model using data from anationwide survey of medical practices supports thetheoretical results. Further, empirical resultssupport the view that time per visit can be used as aproxy index for quality in the primary carephysician market. |
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Keywords: | Internal contracting partnerships physician firms quality |
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