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The pricing behavior of medical groups.

This study discusses a model of the pricing behavior of medical groups. Using data collected, by a mail survey, from medical groups in North Carolina, an empirical test of the model is performed. The results suggest that the prices charged by medical groups are positively influenced by the per capita income of the county in which the group is located, and the per physician utilization of medical, technical, and office personnel. They also suggest that for groups in the sample, a non-physician manager and a non-salaried system of remuneration to member physicians are negatively related to the price of medical services. The results of this study also indicate that the managerial structure of group practice is an important area for further research.