Public Option Will Increase Doctor Shortage – Health Economist

This is the conclusion from a recent report by some of my colleagues from Center for Health Economics and Policy FTI Consulting. In a report titledProtecting the Pipeline: How Public Choices Can Affect Our Nation’s Health WorkforceAn excerpt and some empirical results are given below.

… setting a government rate under a public option could exacerbate the shortage of healthcare workers. Our analysis suggested that the public option would reimburse doctors less than private insurance and increase the share of patients in public plans, which could lead to a reduction in providers’ revenues. This can create a problem for hiring and retaining the workforce, discouraging entry-level workers from entering the field and encouraging early retirement. These results confirm previous research by FTI Consulting which found that public choice can put hospitals in financial distress, leaving them no choice but to cut their service offerings, hours of operation, or time spent on patients. to stay afloat. Our results also support previous research indicating that low government option pay rates can lead to layoffs and other measures that can harm the quality of patient care.

Read the entire report gentlemen.