Question

Physicians who have borrowed extensively to finance their medical educations often enter practice with large debts that they must begin repaying. How does this impact the fees a doctor would charge? Consider all of the following in your answer:

a. What difference would you expect to observe in the fees set by three young physicians just setting up private practice if one financed his education by borrowing and must now make payments of $9,600 per year for 15 years, another had her entire education paid for by her parents, and the third went all the way through medical school on government-provided scholarships and grants?

b. Consider the argument, put forward by the business manager of a medical school, that the government could lower our doctor bills by paying for the entire education of physicians, thus making it unnecessary for physicians to recover the costs of their education (plus interest) by raising their fees. The author of the preceding argument asserted that "you and I" will have to cover the cost of the doctors' loan repayments in the fees we pay to them because medical education expenses "are a legitimate cost of doing business." What difference does it make whether particular payments are or are not "a legitimate cost of doing business?" Suppose all physicians practicing in an area had to pay $5,000 a year to the local crime syndicate as protection money. Would these payments be a "legitimate cost of doing business?" Would they or any other fees they pay for insurance affect doctors' fees?

c. How are current doctor fees (what they can charge patients) related to past costs?

Answer 1

->That physician has taken loan money financing for the medical educations and they have to start return money back their debt when they start their practice.

->Physicians are completing of their medical education by th loans, some had used scholarship and grants of the govt while some had completed their education with the support of their parents.

->Doctors may not charge more money just for the reason that they went to school for many years or for the reason that they are unable to secure financial assistance. there will be no difference in the fee set by the three physicians.

->if the manager of Medical school are that government could lower our doctor bills by paying for the entire education of physicians and make it unnecessary for physicians to recover the cost of their education.
-> If the government provides free education from the nursery then, it would be huge cost for the government because everyone will say that they will study Medical science and after passing tenth standard they can go in other section of study.
->This cannot be done by the government because there will be more demand for Medical study and supply will remain same. Many students who are not interested in medical they will also try to take admission in the college.
->Even when govt pay full expense of education of Medical students after completing their degree, the physician will charge the same fee as before the government support because they have worked hard and study hard for becoming the physician.

-> The supply of physician might decline in that area, thus those outstanding physician could increase their fees and maybe do even well economically under the crime syndicate than they had done before they began paying security money.
->then he/she has no burden to pay back to someone. Therefore, they will not find it necessary for increasing their fees. If physicians in a particular area were required to pay $5,000 security money.
-> It will not be a legitimate cost of doing business because doctors cannot say that they are taking high fee just because of giving security money to the local crime syndicate.
-> It will increase the doctor fee indirectly by decreasing the number of doctors in that area and due to high demand they can ask for more fees.