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A Test of Alternative Demand-Shift Responses to the Medicare Program

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The Economics of Health and Medical Care

Part of the book series: International Economic Association Series ((IEA))

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Abstract

Introduction of the Medicare program in the United States in 1966 has been associated with an acceleration in the rise in price of health services, particularly hospital care. In part, this reflects large increases in real resources used per patient treated. This paper reviews the aggregate evidence, and examines some data on possible changes in the diagnosis, treatment and survival of women with breast cancer. The data lend some support to a model in which increased employment of resources offers utility benefit to health professionals who have considerable discretionary decision power.

Grateful acknowledgement is made to Dr Paul Parker and the Massachusetts Tumor Registry for the use of case records, and to Martin Feldstein for criticism of an earlier version of this paper.

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References

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© 1974 The International Economic Association

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Friedman, B. (1974). A Test of Alternative Demand-Shift Responses to the Medicare Program. In: Perlman, M. (eds) The Economics of Health and Medical Care. International Economic Association Series. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-63660-0_13

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