Business Organization

Physician Care Market

Segment of healthcare where licensed physicians provide preventive, diagnostic, therapeutic, and rehabilitative services.

Primary Care Physicians (PCPs)

Gatekeepers of the health system who provide basic care, preventive care, chronic disease management, and specialist referrals.

Specialists

Physicians offering advanced, focused care in specific fields such as cardiology, surgery, or neurology.

Provider-Based Service

Healthcare delivery primarily shaped by physicians’ knowledge, skills, and expertise.

Information Asymmetry

Patients lack medical knowledge and depend heavily on physicians' recommendations.

Inelastic Demand

Healthcare demand that remains high regardless of price; patients seek care when sick regardless of cost.

Heterogeneity of Services

Variation in physician services depending on patient condition, specialty, and intervention type.

Insurance Dependency

Patient access influenced by insurance coverage, co-pays, and deductibles.

Monopolistic Competition

Market structure with many providers differing in quality, reputation, and specialization.

Fee-for-Service

Payment system where physicians are paid per visit or procedure, encouraging higher service volume.

Capitation

Fixed amount paid per patient regardless of how many services are provided.

Salary-Based Payment

Physicians employed in hospitals or HMOs receive a fixed salary.

Value-Based Care

Compensation tied to patient outcomes and care quality rather than volume.

Demand Side Determinants

Health status, insurance coverage, income, awareness, and education that influence healthcare demand.

Supply Side Factors

Availability of doctors, specialization trends, technology use, and licensing regulations that affect supply.

Rising Healthcare Costs

Increasing expenses due to physician services being a major part of total healthcare spending.

Physician Shortage

Insufficient number of doctors, especially in rural and underserved areas.

Burnout & Stress

Fatigue among physicians caused by high workload and increasing demand.

Equity and Access Issues

Limited healthcare access for uninsured or low-income populations.

Telemedicine

Use of digital technology for remote medical consultations; expanded significantly post-COVID-19.

Team-Based Care

Collaboration among physicians, nurse practitioners, and allied health professionals for patient-centered care.

Preventive Care Focus

Emphasis on regular checkups, screenings, and early intervention.

Globalization of Care

Expansion of medical tourism and cross-border telehealth services.

Similarity to Dentistry Market

Both physician and dental markets are provider-driven and insurance-dependent with monopolistic competition.

Demand Correlation

Poor oral health can worsen systemic diseases like diabetes and heart disease.

Supply Correlation

Both markets require education, licensing, and continuous training to ensure quality.

Dentistry Payment Model

Heavily out-of-pocket; cosmetic and elective procedures often not insured.

Integration Trend

Combining oral and general healthcare through multidisciplinary teams.

Technology in Dentistry

AI, 3D imaging, and tele-dentistry enhancing diagnosis and access.

Preventive Shift

Transition from reactive treatment to proactive prevention in care delivery.

Healthcare Demand

Desire and ability to seek and use healthcare services to maintain or improve health.

Determinants of Healthcare Demand

Health status, income, price, insurance, accessibility, education, and cultural beliefs.

Effective Demand

Healthcare demand backed by ability to pay, often covered by insurance.

Potential Demand

Desire for care limited by financial, geographic, or social barriers.

Induced Demand

Demand generated by physician recommendations or additional procedures.

Preventive Demand

Demand for checkups, vaccines, and dental cleaning before illness occurs.

Curative Demand

Demand for treatments after illness develops, such as surgery or antibiotics.

Physician Care Demand

Driven by illness and chronic conditions; less optional and often insurance-based.

Dental Care Demand

Driven by pain, aesthetics, and function; more sensitive to price changes.

Key Takeaway

Physician and dental markets share structure and insurance reliance; dentistry is more private and aesthetic-focused.