Comments upon an essay by Keith Leffler in the [Wall Street Journal] entitled "Doctors Fees and Health Costs." Leffler argued that "nearly all facts about the market for physicians suggest a market closely regulated by the classic forces of economics" and that past government interference in the medical marketplace has been responsible for high and rising medical costs. Leffler's suggestion that the supply of physicians merely responds to demand, however, overlooks federal subsidies for medical education. He also does not consider the role of health insurance, which in the hospital sector appears to have considerably stilled the classic forces of economics.
This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation 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.
Our mission to help improve policy and decisionmaking through research and analysis is enabled through our core values of quality and objectivity and our unwavering commitment to the highest level of integrity and ethical behavior. To help ensure our research and analysis are rigorous, objective, and nonpartisan, we subject our research publications to a robust and exacting quality-assurance process; avoid both the appearance and reality of financial and other conflicts of interest through staff training, project screening, and a policy of mandatory disclosure; and pursue transparency in our research engagements through our commitment to the open publication of our research findings and recommendations, disclosure of the source of funding of published research, and policies to ensure intellectual independence. For more information, visit www.rand.org/about/research-integrity.
The RAND Corporation 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.