This is a situation involving my niece Jenny. Jenny is a student who likes to make informed choices about her future. She called me for some advice regarding a potential pursuit in a career as a physician. She also wanted information on where the best locations to practice medicine would be. Jenny knows that I am currently enrolled in a course in economics and has decided to contact me for information on the market for physicians. More specifically information on elasticity, economic profit and loss, pricing, supply and demand, and costs of production. To provide her accurate answers, I chose to educate myself on the subject matter With the information I provided, Jenny should be equipped with the resources she needs to make an
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In order to accommodate this growth, there were expansions in positions by Graduate Medical Education (GME). Other factors which will determine the future supply and demand of the physicians America are the aging of the population in U.S and that of physician workforce. It has been projected that due to population growth, aging and similar other factors, the demand of the physicians will outpace the supply of the physicians by 2025. Hence, the recommendations to face the future shortages are to improve the efficiency of the entire healthcare system, the way services are being delivered should also be considered, and how to make better use of the present physicians are most important (AAMC, 2007). According to the diagram figure 1, it has been projected that the supply of physicians would be less than the demand of the physicians. Therefore, by 2025, there will be around 124,000 physicians’ shortage in the market.
If we alter the assumptions underlying the projections of physicians demand and supply in the market, such as increase in the number of hours worked by the old physicians, utilization rate of each physician and rise in the accommodation capacity of GME and other productive capacity of the healthcare infrastructure, then there might be increase in shortage by 35,000 more than the shortage in baseline (Mgma, 2014).
According to the price