US Physicians: Supply Shortages and how they Impact Salary

In an economic context, healthcare consumption is noThe salary of medical professionals in the US is similar
different from other consumer services. Where thereto the UK and France and will act as a factor as
is a demand, the market will attempt to meet it throughyoung students choose their career path. When
supply. Where supply outweighs demand, prices maystudents go onto choose a medical subject, the
fall as the market becomes competitive and vicemarket as a whole becomes far less relevant and
versa in reverse circumstances. With physicians andhealthcare providers are left in a position where they
the provision of healthcare services, supply andmust compete to secure the services of physicians.
demand do not fluctuate with price as much as otherOn the other hand, during times of higher amounts of
services.available physicians the tables will turn and prices will
This is for a number of reasons. The main one beingbecome lower for service providers as hiring staff
that demand for healthcare comes more as abecomes less competitive.
necessity so demand cannot increase and likewiseAt this point in time, the break-down in international
cannot decrease for the same reasons. However; ontrade between service providers and physicians has
a different level, the relationships between health carehad a profound effect and a much expected one at
service providers and medical professionals canthat. Although healthcare consumers are left in a
indeed be impacted by pricing especially in a globalposition where by they may not migrate as easily
marketplace.between providers, actual healthcare professionals
Many foreign countries, such as the UK, providemay do so with relative ease. This has created a
healthcare through the state and also have legislation insituation where by a shortage of supply causes
place which means that private medical care can onlyforeign doctors to migrate and for foreign healthcare
be provided by Physicians that are working out ofservice providers to raise their prices in an attempt to
hours. This makes private healthcare more of a luxurykeep their talent. According to years of authoritative
than a necessity and places salaries firmly in the handseconomic theory, this should indeed result in a shift
of the UK government - a similar structure is alsotowards international equilibrium where by all service
implemented in France. As a result, salaries are onlyproviders will move towards a middle ground in pricing.
used as an incentive to induce young academics toDespite this, the higher levels of demand for nationals
enter the profession rather than being a bi-product ofwill always play a role in the formation of the market
any consumer-side market forces.that is formed.