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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Cooper, Barbara S., and Worthington, Nancy, ‘Medical Care Spending for Three Age Groups’, Social Security Bulletin (May 1972).
Davis, K., ‘Economic Theories of Behavior in Non-Profit Private Hospitals’, Economic and Business Bulletin (Aug 1972).
Feldstein, M. S., The Rising Cost of Hospital Care (Washington, D.C.: Information Resources Press, 1971).
—, ‘The Rising Price of Physicians’ Services’, Review of Economics and Statistics, lii (May 1970) 121–33.
—, ‘Hospital Cost Inflation: A Study of Nonprofit Pricing Behavior’, American Economic Review (Dec 1971).
Friedman, B., Parker, P., and Lipworth, L., ‘The Influence of Medicaid and Private Health Insurance on the Early Diagnosis of Breast Cancer’ (forthcoming in Medical Care).
Newhouse, J. P., ‘Toward a Theory of Nonprofit Institutions: An Economic Model of a Hospital’, American Economic Review, lx (Mar 1970) 64–74.
Pauly, M. V., ‘The Economics of Moral Hazard’, American Economic Review, lviii, 4 (1968).
Phelps, C. E., and Newhouse, J. P., ‘The Effects of Coinsurance on Demand for Physical Services’, Social Security Bulletin (June 1972).
Rosett, R. N., and Lien-Fu Huang, ‘The Effect of Health Insurance on the Demand for Medical Care’, mimeographed (1970).
Theil, H., Principles of Econometrics (New York: Wiley, 1971).
U.S. Public Health Service, End Results in Cancer, Report No. 3 (Washington, D.C., 1968).
U.S. Department of Health Education and Welfare, Office of the Assistant Secretary for Program Coordination, Program Analysis: Cancer, October 1966 (Washington, D.C., 1966).
U.S. Senate, Committee on Finance, Medicare and Medicaid: Problems, Issues and Alternatives (Washington, D.C., 1970).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 1974 The International Economic Association
About this chapter
Cite this chapter
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
Download citation
DOI: https://doi.org/10.1007/978-1-349-63660-0_13
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-63662-4
Online ISBN: 978-1-349-63660-0
eBook Packages: Palgrave Literature & Performing Arts CollectionLiterature, Cultural and Media Studies (R0)