Health Manpower Shortage

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Primary care physicians (PCPs) play a vital role in our healthcare system. Yet, recently, there has been a shortage in the supply of PCPs, and the supply is unable to serve the needs of the growing patient population, especially those living in rural areas or under government insurance programs such as Medicare and Medicaid. Due to the lack of PCP supply and the increasing number of patients, the delivery of care and quality of care have suffered as well. There is a limited interaction between a patient and physician, there is a delay of treatment, and there is a large amount of Medicaid patients who are unable to find PCPs that can accept them. Today, over sixty million Americans rely on Medicaid as their primary source of health care (Bachrach, 2010). “The federal government has studied the …show more content…

Simply put, shortage is “The excess of the quantity demanded over the quantity supplied at market prices” (The Economics of Health and Health Care). In Figure 1 below, the graph can be used to illustrate a primary care physician shortage. The health manpower shortage at the wage W1 is equal to Ld1 – Ls1. However, if wage has increased to W2, shortage would no longer exist. This depicts the theory that at a higher wage, there is less demand for labor services and more would have been supplied. In order to minimize the negative impact of a physician shortage, changes must be made, and this concept here suggests a financial reimbursement may be useful in addressing the shortage of PCPs and the lack of care provided to Medicaid patients. The Patient Protection and Affordable Care Act (PPACA) has created insurance provisions that has intentions to increase the Medicaid coverage while appropriately reimbursing physicians for this new surplus of patients without offsetting government expenditures. The accommodation maintains the health insurance expansion while incentivizes the physician

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