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Journal of Law and Economics Vol. Economists who have subscribed to this hypothesis have never indicated why competition among doctors failed to establish uniform prices for identical services.
For any individual doctor, given the existing pattern of price discrimination, income from professional services would be maximized The flexner report essay rates were lowered for affluent patients and increased for poor patients.
However, if many doctors engaged in such price policies, a pattern of prices for medical services would be established that would be independent of the incomes of patients.
Yet despite this inconsistency between private interests and the existing pattern or structure of prices based on income differences, this price structure has survived. Is this a contradiction of the law of markets?
Why is it possible to observe in a single market the same service sold at different prices? Kuznets, Income from independent Professional Practice ; M. Friedman in Impact of the Trade Union, p. Wright ; Also K. The results The flexner report essay the Friedman-Kuznets study, at p. Robinson, Economics of Imperfect Competition, p.
For example, the world famed Mayo Clinic discriminates in pricing. A finance department makes inquiries into the patient's economic status and scales the bills accordingly. Fees are not discussed in advance. Daugherty, Principles of Political Economy, p.
Scitovsky, Welfare and Competition, p. Boulding, Economic Analysis, p.
Enke, Intermediate Economic Theory, p. It will be argued that the discriminating monopoly model is valid for understanding the pricing of medical services, and that each individual buyer of medical services that are produced jointly with hospital care constitutes a unique, separable market.
In the process of presenting evidence supporting this thesis, other closely related phenomena will be considered. These are 1why the AMA favors medical insurance prepayment plans that provide money to be used to buy medical services, but bitterly opposes comparable plans that provide instead of money, the service itself and 2why the AMA has opposed free medical care by the Veterans Administration for veterans despite the enormous increase in the quantity of medical services demanded that would result from the reduction to zero of the private costs of medical care for such a large group.
The second half of this paper represents an attempt, by means of an application of the discriminating monopoly model, to further our understanding of many unique characteristics of the medical profession.
If the medical profession constitutes a discriminating monopoly, what inferences can be drawn concerning the relationship between this monopoly and other economic, sociological and political aspects of the medical profession? These are, in order of presentation, a hypothesis alternative to the price discrimination hypothesis, a history of the development of the powers that enable organized medicine to organize effectively a discriminating monopoly, evidence supporting the validity of the discriminating monopoly model for understanding the pricing of medical services, and lastly an application of the discriminating monopoly model to rationalize many characteristics of the medical profession that have been hitherto thought of as either anomalies or behavior that could best be explained as non-economic phenemona.
It is worth noting that there is no inconsistency between the validity of the explanation to be presented and the inability of any or all members of the medical profession, past, present or future, to understand the economic arguments that follow. All that is required of doctors is the ability to engage in adaptive behavior of a very rudimentary character.
Economists argue that price discrimination by doctors represents the profit maximizing behavior of a discriminating monopolist; the medical profession takes the contrary position that price discrimination exists because doctors represent a collection agency for medical charities.
This income is used to finance the costs of hiring doctors to provide medical care for the poor who are cirl:. The doctor who is hired by the medical charity and the medical charity itself are typically the same person.
Since the loading charge that is imposed upon non-charity patients to support the activities of medical charities is proportional to income or wealth, discriminatory prices result. The following quotation from an unnamed but highly respected surgeon presents the position of the medical profession.
I don't feel that I am robbing the rich because I charge them more when I know they can well afford it, the sliding scale is just as democratic as the income tax. I let the widow set her own fee. I charged the banker an amount which he probably carries around in his wallet to entertain his business friends.Flexner Alex Rourke PCH Flexner Paper The Flexner Report from has had a huge influence on our current health care crisis.
There were three main outcomes of the report. The first is that medical education in the U.S. and Canada is to become standardized. This had both positive and negatives outcomes. Flexner report and ends with the conclusion of World War II. During this period, It is the thesis of this essay that Flexner and the Carnegie Foundation were, to paper.
THE A.M.A. AND THE SUPPLY OF PHYSICIANS. AND THE SUPPLY OF PHYSICIANS ' " ' ' THE ". The Essay On Flexner Report Pain In Front Hip Joint Illinois Muscles And Ligaments Of The Leg Illinois Infomation.
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1. Flexner A. Medical education in the United States and Canada. New York, NY: Carnegie Foundation for the Advancement of Teaching; 2.
Beck A. The Flexner report and the standardization of American medical education. JAMA. ; 3. Bonner TN. Iconoclast. Abraham Flexner and a life of learning. The Essay On Flexner Report For Dummies Shooting Pain In Inner Thigh Lateral Thigh Pain Causes and there are better ways to integrate core strength training exercises.
The Flexner Report, officially titled “Medical Education in the United States and Canada,” was a landmark document that brought about medical education reform in North America.
Abraham Flexner, a.