HMO PPO and how it impacts physicians

[AKMCAT]

Can anyone give a summary on how HMO and PPO impact physicians. I understand the difference and restrictions; however, I'm not sure if either is necessarily good or bad for a physician.

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[tmn]

Someone has an interview coming up.

 

[AKMCAT]

Someone has an interview coming up.

Yes any input would be appreciated lol

 

[jqueb29]

Can anyone give a summary on how HMO and PPO impact physicians. I understand the difference and restrictions; however, I'm not sure if either is necessarily good or bad for a physician.

Both lead to market failures (Pareto inefficiencies in which the overall utility of all parties could be increased with a different distribution of outcomes). HMO's/PPO's provide perverse economic incentives to physicians to under-provide care. As a pre-paid plan, the maximum profit a doctor can make comes from prescribing the least amount of care. This is in comparison to a fee-for-service system, which provides perverse incentives for doctors to over-prescribe care, as their maximum profit in this situation comes from prescribing the greatest amount of care.