Financial subsidies and the shortage of primary care physicians

Anikó Bíró and Blanka Imre ()
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Blanka Imre: University of Groningen and Centre for Economic and Regional Studies

No 2210, CERS-IE WORKING PAPERS from Institute of Economics, Centre for Economic and Regional Studies

Abstract: The shortage of primary care physicians is a global healthcare problem, especially in rural areas. In this paper, we analyse the choice of location of primary care physicians and estimate the causal effect of financial incentives on the supply of primary care physicians in underserved areas. Our analysis is based on a quasi-experimental setting from Hungary. After 2015, primary care physicians could receive financial subsidy if they filled such a primary care position which has been vacant for at least a year, the amount of the subsidy increasing with the duration of the vacancy. Our results suggest that targeted financial incentives can help fill long-time vacant primary care positions but cannot completely eliminate primary care shortages. We also provide evidence on the role of demographic characteristics and individual preferences in the location choice of primary care physicians.

Keywords: primary care; physician shortage; financial subsidy; location choice; Hungary (search for similar items in EconPapers)
JEL-codes: H20 I11 I18 (search for similar items in EconPapers)
Date: 2022-05
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