An Analysis of Physician-Induced Demand in the Health Care Industry

Abstract

Purpose: Physicians are the healthcare industry's backbone. Although they are said to be the "backbone" of the health care sector, the tasks and obligations of providers of health care services are inevitable and critical to healing the ailments of the recipients. Health care professionals should act as guides for patients and train patients and their family members to make the best decisions regarding their health condition and medical treatment plan in order to improve the health of those who receive health care services. As a result, it is critical to comprehend the nature of the demand for health care and to detect the occurrence of physician-induced demand in the health care system. Design and Methodology: The article concentrated on physician-induced demand in the healthcare market in Chennai. The primary data was collected from 60 healthcare providers and recipients, including the general public and general physicians. Secondary data was acquired from field-related materials, books, journals, websites, research papers, and dissertations. The statistical tool, Factor analysis was used to examine the primary data collected. Findings: According to the study, physicians and hospitals stimulate demand by providing free health examinations, recommending medication supplements, and engaging in referral marketing. Scope for further research: This analysis provided a broad perspective on induced demand from physicians, healthcare professionals, hospitals, diagnostic centers, and pharmacies. Both commercial and governmental organizations might do the study in order to save people's out-of-pocket expenses as well as the government's healthcare costs.