Healthcare Economics Discussion 5 Nursing Assignment

Discussion 5: Healthcare Economics
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Discussion 5: Healthcare Economics
The number of competitors in a competitive price market is determined by the economies of scale about entry barriers and the size of the market. The structure of the physician service market, on the other hand, is impacted by the extent to which the large medical groups can attain cost savings. Doctors are required to be licensed, the number of spaces in medical school is limited, and they have an obligation to have graduated from an accredited medical school. However, regardless of the barriers to entry, there is a significant number of practicing physicians thus rendering the market for physician services competitive. This discussion shall explore how cost saving by large medical groups affects the structure of the medical services market.
For many decades, the primary form of medical practice was the solo practice where physicians were compensated for services reimbursed. Considering the large number of physician-companies, the extent of competition in the sector was large...