Coordination, Switching Costs and the Division of Labor in General Medicine

An Economic Explanation for the Emergence of Hospitalists in the United States

Submitted by Hope Rachel Hetico RN, MHA

[Managing Editor]

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From a white paper by David O. Meltzer, Jeanette W. Chung

NBER Working Paper No. 16040
Issued in May 2010

General medical care in the United States has historically been provided by physicians who care for their patients in both ambulatory and hospital settings.  Care is now increasingly divided between physicians specializing in hospital care (hospitalists) and ambulatory-based care primary care physicians.  We develop and find strong empirical support for a theoretical model of the division of labor in general medicine that views the use of hospitalists as balancing the costs of coordinating care across physicians in the hospitalist model against physicians costs switching between ambulatory and hospital settings in the traditional model.

Assessment

These findings suggest opportunities to improve care.

Link: http://papers.nber.org/papers/w16040

Conclusion

All ME-P readers are invited to opine.

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One Response

  1. U.S. Dependent on International Graduates to Provide General Surgeons: [New Report]

    The U.S. has “remained inherently dependent” on international medical school graduates to sustain its ranks of general surgeons, but the number of graduates from foreign programs practicing here is declining and this could create “a crisis of urgency” and exacerbate a projected general surgeon shortage, concluded a report in the Journal of The American College of Surgeons.

    The report noted that the percentage of foreign medical school graduates in general surgery has decreased from 17.4% of general surgeons in 2005, to only 14.8% now; and that the overall number of general surgeons working in small, rural practices has fallen almost 39% since 2005. Until domestic production of general surgeons increases, the nation is dependent on graduates of foreign medical schools, the report concluded, but those graduates are now facing resistance to their applications, potential political and bureaucratic barriers, and uncertainty in their ability to travel.

    Source: Andis Robeznieks, Modern Healthcare [7/11/10]

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