<p>If the supply of medical doctors is increasing at a lower rate than the demand for medical doctors (due to an aging population and population growth), then why are salaries for medical doctors expected to decline?</p>
<p>because the government can decide on what they want to cut. This procedure is making lots of money? Lets lower the reimbursement for it. Rinse and repeat.</p>
<p>I once learned that a large share of medical expenses is financed by the government. (Medicare and medicaid.) So the congress has a lot of power to decode how much the doctors/hospital should be paid. Hospitals may be in a better position to protect their interests than doctors because they have more money.</p>
<p>Because none of the demand is coming from the solvent uninsured. Third party payors (including Medicare/Medicaid) are largely indifferent to supply.</p>
<p>Of course, physicians’ offices also have to deal with numerous different third party payers with different policies and procedures, adding to their costs.</p>
<p>Don’t forget that medical care costs in the US are crazy expensive, consuming a sixth of the US economy (as opposed to about a tenth in other rich countries). Controlling the rapid cost growth means that there are probably a bunch of interests (physicians, other health care workers, hospitals, drug companies, medical device and equipment companies, insurance companies) whose gravy train can be cut, and each will want to push the cuts onto someone else (or keep the costs rising for individuals (including as taxpayers) and employers who pay for it all).</p>
<p>First of all, there is a shortage of physicians in rural areas and an abundance of physicians in desirable large cities. So take these news reports with a grain of salt. Medicare/medicaid/VA provides the bulk of insurance coverage in America. It is greater than 50% in the economy and usually more than 60% in most hospitals. The government pays the hospitals very well but not the physicians. In some specialties, private insurers pay the physicians 3 - 4 times as much as the government. Nevertheless, both private and government insurers are decreasing reimbursements or requiring more evidence for certain medical procedures. Physicians are being hit from both ends, private system and the government. Other factors, specifically in the procedural specialties, are the large deductibles and copays that have been instituted over the last several years. Patients forgo care.</p>
<p>Physicians salary is not determined by the economics of supply and demand. Govt and private insurance companies decide the reimbursement for physicians. US has the highest overall medical cost in the world. Its no wonder that the US doctors earn most than their counterpart in the rest of the world. With Obama care kicking in soon, the reimbursement is only going to go down.</p>
<p>The health care cost in this country is not due to doctor’s salaries nor simple hospital costs. It is due to the fact that Americans believe they should have “every thing done”. Those over 65 have spent over 33% of our health care dollars - often in the last month of their life</p>
<p>Statistics showed that it was not cost effective for young women to have mammograms! Do you remember the outrage.</p>
<p>
</p>
<p>However, if Americans stopped “having everything done”, then that would reduce the demand for physicians and hospitals, resulting in lower pay for physicians and lower revenues for hospitals.</p>
<p>New health care law will “take care” of the very sick…</p>