Market Equilibrium

Market Equilibrium Process

Menai Edwards

University of Phoenix

Daniel Puente

October 21, 2013

Market Equilibrium Process

In 2006, the American College of Physicians released a report entitled, "The Impending Collapse of Primary Care Medicine and Its Implications for the State of the Nation's Health Care" (American College of Physicians, 2006). The report stimulated concern about the shortage of primary care physicians (PCPs) and offered ways to fulfill the increasing demand for their services. Based on a report issued by the American Academy of Family Physicians in order for the country to have enough physicians to meet the demands of the population in 2020, a typical family medicine residency program would need to increase from an average of 21.7 residents to 24 residents (American Academy of Family Physicians, 2006). In light of new supply and demand determinants, the shortage may be more acute. The 2011 State Physician Workforce Data showed no appreciable increase in the median number of active primary care physicians (Association of American Medical Colleges, 2012). For the week 2 assignment, I have chosen to discuss the concepts of the market equilibrating process as it relates to the supply and demand for primary care physicians and how it may affect the cost of the services they provide.

Determinates of Demand for Primary Care Physicians

There are contributing factors that have increased the demand for primary care physicians. Perhaps the most significant demand determinant is related to the population growth and the increasing number of people over 65. This age group is projected to increase to 88.5 million in 2050, more than doubling the number in 2008. (U.S. Census Bureau,2008). This is likely to have impact on the number of older patients with chronic diseases, thereby increasing the demand for primary care visits. Exhibit 4 provides a graphical example of the projected percentage change in the workload and number of general practitioners...