Question

5) Using the closed-staff physician control model developed by Pauly-Redisch, explain how the optimal number of physicians is determined. Use a graph.

Answer 1

Aant fram he devetoping Cous tries in ahich ntem ber of Physitions ts tremely Rwsthe the ember of Phy aicians in the diffnent Cruntries 8hows a wide rnange even tf F Comparing with the GDP or even wit the number of Junses ACconding WHO data there are more than 500 Physicians/A00, 000 habtants Ceuba and inRtaty morte than 40 Belares and Nonoay o in &paln and Geongia m orce than 3o0 1 aa Countrles ammg them Begiem, frente and eeecefweden, foitzenlan et The nember - ) of ductors s belno 300 0, 000 inhabetants fon erample t Buch tech Lruntries as the Nethenland and UsA) and beow 30 i the United Kingdem or tn Jafan Thene is 0 Cornelatin between the DP end tha umben awel a between the Cwernage 0f doutons lite anpactancy Con 8D DA-1Y, DALE) There 8 no Connelaten and the nunbenof 10ctons between GP- and peciaeist but ttmay a Wear Corelation between the numbend hespital beas and the number ot 0cton t r diptieult to find an ortimal doctor amon difprcent Countrales Cro Nunde Fatio

Siffrent ceeorent of non- tro pH Comes Prem th esries that betieJe thact hosp/tal marimize the pecuntaruy ain to the deci'sive 5.at of decisien marenu Mark Pauly and Micheee Realisch (a13) 1scrbe nanprott hospitee as a Physician s corenalive aemng that the hes petal ts Controled by a Physiciens stapt who openacte the bespital to manini ze their net inemes This vrew af the has petaetocuses on the fua price 0f the harpital Cane, meaqeng the total hangs to the patient by both hospital and Physicia. AMume that the Patient Pays e Sengle beil e pocse)tatide the futt pmite of the 1THE tue Pre Care and Let olonatim be ero the Cene depends upe the Comsumen demand and on the total quantety f the CaTe offened hy the Physiuians Cooperative The ameunt of tare Proguad and 0tene to patfents depen ols in Hunnn the yiantity 0t tnput hroreg h top decision makens, here the Physicenns Semmarizid as pital eput as CapetalKRnol Labeur L Let the Physiticn inPut be o finet tnput r the hespital Aelect a Closed atats the

RERCOGA Phy Aitn mome CCende ter Phy sicians et avenage nevenu Ma Nember of statPhysicans model the Co-op ens the hospitrl to Maxinize the Net Radenue NR) Pen Phyaitian ( fegue-13-5 NR.The new reenue ts the Seen of a the revenue is ies taetor pay ment to nen phy aiuien labourt and Payment to captal. The netnevenue Pen Physiien evides that revenee over the total number of Physians Mitn tntne inaase nuberot Physirans initiay intrese reventee per Physitianventaryrevente Pen Phoyian mest en becacese ueeto freet level 0f non-Phyitian laben and capetrel he tentent evenu C h the numeraton) we'l he totrease 8naleR than the pencent Chang htumber dl PhyAilians Cequmneto) tun /3-6 shmes the Ptimat &teff lize ihe Physileen Can imet the tize of te statl n ctare the A tatt ene tollan varees are on the vertita anot the number s Phya s on

M 8 im the horezontae enis The ceerwe n 1 denotas averase phyiian income The N Ceeve Betent at the origin Point b C00 Fevence),re to a marimem ae point depices the feppay Cende hyitians tohich and then fans Cene . Case fenitely eastie Plaes nepresentng Physiian- 9nie endineonment for the Optimat &tat Phyician oho are o1 the tatr N TRRChes, manuimum geze w td be wtene