Cover: The Economics of Group Practice.

The Economics of Group Practice.

Published 1971

by Joseph P. Newhouse

Purchase Print Copy

 Format Price
Add to Cart Paperback26 pages $20.00

A theoretical and empirical discussion of how costs of outpatient medical practice vary with the size of the group providing services. The paper focuses on the incentives of the individual physician to keep the costs of the practice down and his work effort high. Since cost and revenue-sharing schemes tend to dilute this incentive, we would expect that costs would be greater and hours of work less where they are present. The evidence presented in the paper tends to support these propositions. 26 pp. Bibliog.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.