Physician ownership of ancillary services: indirect demand inducement or quality assurance?
This paper analyzes two competing explanations for the ownership of ancillary facilities by referring physicians: indirect demand inducement and quality assurance. Consistent with the demand-inducement explanation we find physician-owned clinics treat patients for 50 percent more visits than do independent clinics and the differential is directly related to factors facilitating demand inducement. We find no difference in quality of care across ownership structures, however. In further support of the demand-inducement hypothesis we find that physical therapists are less likely to work in physician-owned clinics in states where therapists are allowed to practice independently.
Georgetown University, Washington, DC, USA.
J M
JM
Mitchell
T R
TR
Sass
D000554:Ambulatory Care Facilities / Q000191:economics / Q000458:organization & administration* / Q000592:standards; D003625:Data Collection; D005431:Florida; D006301:Health Services Needs and Demand / Q000191:economics*; D006302:Health Services Research; D006801:Humans; D008875:Middle Aged; D018803:Models, Economic; D010067:Ownership; D026741:Physical Therapy Modalities / Q000191:economics / Q000706:statistics & numerical data*; D018584:Physician Self-Referral / Q000706:statistics & numerical data*; D011785:Quality Assurance, Health Care; D014481:United States