Does the Decision Joining Group Pratice Inrease Physicians' Insurance Revenue?

Project: National Science and Technology CouncilNational Science and Technology Council Academic Grants

Project Details


Does the Decision Joining Group Practice Increase Physicians’ Insurance Revenue? As a way to practice medicine, group practice has been around for a long time. Newhouse (1973) suggested that group practice had the advantages of lowering costs and increasing leisure. Getzen (1984) suggested “brand name” as a major cause. Lin et al. (2006) observed that in 2002 Taiwan physicians in group practice enjoyed higher claims, no matter in single-specialty or multiple-specialties, and took it as a strong support for policy encouraging group practice. However, in 2002 only 11% Taiwanese physicians joined multiple-specialties group practice (Lin et al. 2002). Only 23.26% clinics in Taiwan were group practice during 2003 (Yang et al., 2006), among which most clinics were single-specialty and small scale. If joining group practice can increase income, why did not more physicians join group practice? If multiple-specialties group practice can increase revenue, why were most group practice single-specialty? Past studies fail to exclude the possibility that physicians join group practice to increase leisure. To clarify the relation between group practice and physician revenue, this study aims to answer the following questions: 1. What is the ratio that physician transfer between single and group practice? 2. Is physician insurance revenue positively associated with the decision joining group practice? 3. Does the decision joining group practice increase physician insurance revenue? This study will follow physicians who accepted the Taiwan national health insurance as single practitioners in 1999, build up their history of practice modes through 2005, including joining group practice, joining hospitals, and a mix between practice modes. Their monthly insurance revenue will be estimated. Insurance revenue’s effect on joining group practice will be analyzed with competing risk duration models. The effect of joining group practice on insurance revenue will be analyzed with panel OLS.

Project IDs

Project ID:PF9709-0828
External Project ID:NSC97-2410-H182-003
Effective start/end date01/08/0831/07/09


  • group practice
  • single practice
  • physician revenue
  • event history analysis
  • panel OLS


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