An example is worth a thousand studies – the free market can work to limit health care costs.
As long as it is operating under a global cost cap.
The National Health Service, not known as an exemplar of free market thinking, has more candidates for training positions than there are open slots. Physicians from around the world are applying for these slots, providing fierce competition for UK-trained physicians. And where there is competition, there will be downward pressure on salaries amongst the candidates.
Physician income in the UK is lower than here in the US – according to the NHS, “A typical doctor, five years after graduating from medical school, on a 50% banding supplement would be earning approximately £48,000.” (That’s about $100k, or $78k less than an American family practice doc)
Alas, unlike the UK, this strategy (using the free market to manage physician costs) will not work in the US. On this side of the Atlantic, the more physicians there are, the more spending there is.
thanks to FierceHealthcare for the heads’ up.
I would encourage you to look at US and UK average “GP” salaries a little more closely. I would suggest that the average salary for GPs in the UK is closer to 100K Pounds and the average salary for FPs (family physicians) in the US is closer to 150K Dollars. Additionally, any comparison of compensation without considering the scope and efficiency differences between the 2 groups triggers the old “apples to oranges” argument. Finally, fewer US med school grads are training in family medicine and family physician salaries appear to be decreasing. Any speculation on how consumer demand for FM appointments has changed? Have you tried to get an appointment with your primary care physician lately?