Partnerships, profit sharing, and quality competition in the medical profession

Journal Article (Journal Article)

This paper contains a theoretical model of medical partnerships with individual quantity and quality choice. The firm selects price, the number of partners and profit sharing. The firm encourages inter-firm quality competition and discourages intra-firm quality competition through differential profit sharing. An empirical model using data from a nationwide survey of medical practices supports the theoretical results. Further, empirical results support the view that time per visit can be used as a proxy index for quality in the primary care physician market.

Full Text

Duke Authors

Cited Authors

  • Bradford, WD; Martin, RE

Published Date

  • January 1, 2000

Published In

Volume / Issue

  • 17 / 2

Start / End Page

  • 193 - 208

International Standard Serial Number (ISSN)

  • 0889-938X

Digital Object Identifier (DOI)

  • 10.1023/A:1007894428368

Citation Source

  • Scopus