Thehealth-careeconomyisfilledwithunusualandevenuniqueeconomicrelationships.Oneoftheleastunderstoodinvolvesthepeculiarrolesofproduceror"provider"andpurchaseror"consumer"inthetypicaldoctor-patientrelationship.Inmostsectorsoftheeconomy,itisthesellerwhoattemptstoattractapotentialbuyerwithvariousappealingfactorsofprice,quality,anduse,anditisthebuyerwhomakesthedecision.Suchcondition,however,isnotcommoninmostofthehealth-careindustry.
Inthehealth-careindustry,thedoctor-patientrelationshipisthemirrorimageoftheordinaryrelationshipbetweenproducerandconsumer.Onceanindividualhaschosentoseeaphysician-andeventhentheremaybenorealchoice-itisthephysicianwhousuallymakesallsignificantpurchasingdecisions:whetherthepatientshouldreturn"nextWednesday",whetherX-raysareneeded,whetherdrugsshouldbeprescribed,etc.Itisrarethatapatientwillchallengesuchprofessionaldecisionsorraiseinadvancequestionsaboutprice,especiallywhenthediseaseisregardedasserious.
Thisisparticularlysignificantinrelationtohospitalcare.Thephysicianmustcertifytheneedforhospitalization,determinewhatprocedureswillbeperformed,andannouncewhenthepatientmaybedischarged.Thepatientmaybeconsultedaboutsomeofthedecisions,butingeneralitisthedoctor'sjudgmentsthatarefinal.Littlewonderthenthatintheeyeofthehospitalitisthephysicianwhoisthereal"consumer".Asaconsequence,themedicalstaffrepresentsthe"powercenter"inhospitalpolicyanddecision-making,nottheadministration.
Althoughusuallythereareinthissituationfouridentifiableparticipants-thephysician,thehospital,thepatient,andthepayer(generallyaninsurancecarrierorgovernment)-thephysicianmakestheessentialdecisionsforallofthem.Thehospitalbecomesanextensionofthephysician;thepayergenerallymeetsmostofthebillsgeneratedbythephysician/hospital,andforthemostpartthepatientplaysapassiverole.Weestimatethatabout75-80percentofhealth-carechoicesaredeterminedbyphysicians,notpatients.Forthisreason,theeconomydirectedatpatientsorthegeneralis