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The Role of Physicians in Hospital Production

Gail A. Jensen and Michael A. Morrisey
The Review of Economics and Statistics
Vol. 68, No. 3 (Aug., 1986), pp. 432-442
Published by: The MIT Press
DOI: 10.2307/1926020
Stable URL: http://www.jstor.org/stable/1926020
Page Count: 11
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The Role of Physicians in Hospital Production
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Abstract

We use a translog production function approach to examine the effects of medical staff physicians on hospital production, and how their effects differ in teaching and non-teaching hospitals. In teaching hospitals, we also focus on the special role of medical residents. We find that physicians have a strong positive influence on the productivity of other inputs, and that they are substitutes for other resources. Controlling for patient casemix causes significant changes in estimated marginal products; those of labor inputs increase and that of capital declines. The implications of our findings for policy are explored.

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