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Financial subsidies and the shortage of primary care physicians

Author

Listed:
  • Anikó Bíró

    (Centre for Economic and Regional Studies)

  • Blanka Imre

    (University of Groningen and Centre for Economic and Regional Studies)

Abstract

The shortage of primary care physicians is a global healthcare problem, especially in rural areas. In this paper, we analyse the choice of location of primary care physicians and estimate the causal effect of financial incentives on the supply of primary care physicians in underserved areas. Our analysis is based on a quasi-experimental setting from Hungary. After 2015, primary care physicians could receive financial subsidy if they filled such a primary care position which has been vacant for at least a year, the amount of the subsidy increasing with the duration of the vacancy. Our results suggest that targeted financial incentives can help fill long-time vacant primary care positions but cannot completely eliminate primary care shortages. We also provide evidence on the role of demographic characteristics and individual preferences in the location choice of primary care physicians.

Suggested Citation

  • Anikó Bíró & Blanka Imre, 2022. "Financial subsidies and the shortage of primary care physicians," CERS-IE WORKING PAPERS 2210, Institute of Economics, Centre for Economic and Regional Studies.
    • Handle: RePEc:has:discpr:2210
    as

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    References listed on IDEAS

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    1. Francisco Costa & Letícia Nunes & Fabio Miessi Sanches, 2024. "How to Attract Physicians to Underserved Areas? Policy Recommendations from a Structural Model," The Review of Economics and Statistics, MIT Press, vol. 106(1), pages 36-52, January.
    2. Thomas Le Barbanchon & Roland Rathelot & Alexandra Roulet, 2021. "Gender Differences in Job Search: Trading off Commute against Wage," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 136(1), pages 381-426.
    3. Borghorst, Malte & Mulalic, Ismir & van Ommeren, Jos, 2024. "Commuting, gender and children," Journal of Urban Economics, Elsevier, vol. 144(C).
    4. Steven Simoens & Jeremy Hurst, 2006. "The Supply of Physician Services in OECD Countries," OECD Health Working Papers 21, OECD Publishing.
    5. Tamara Bischof & Boris Kaiser, 2021. "Who cares when you close down? The effects of primary care practice closures on patients," Health Economics, John Wiley & Sons, Ltd., vol. 30(9), pages 2004-2025, September.
    6. Hancock, Christine & Steinbach, Alan & Nesbitt, Thomas S. & Adler, Shelley R. & Auerswald, Colette L., 2009. "Why doctors choose small towns: A developmental model of rural physician recruitment and retention," Social Science & Medicine, Elsevier, vol. 69(9), pages 1368-1376, November.
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    More about this item

    Keywords

    primary care; physician shortage; financial subsidy; location choice; Hungary;
    All these keywords.

    JEL classification:

    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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