Some health economists believe that the demand for medical


Some Health Economists believe that the demand for medical care may be “supplier” or physician-induced.

a. State whether under a Fee-for-Service and under a Capitation financing structure physicians will have an incentive to increase or decrease demand.

Fee-for-Service:

Capitation:

b. Give an example of each instance.

Fee-for-Service:

Capitation:

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Business Economics: Some health economists believe that the demand for medical
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