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Some Ramifications of Compensation Limitations in Personal Services Contracts for Direct Health Care Providers

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Author
Schauppner, Carl E.
Date
1990-12
Advisor
Melese, Francois
Second Reader
Trietsch, Dan.
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Abstract
The purpose of this study was to examine the effects of price restrictions in personal services contracts for direct health care providers. This is a unique method of contracting designed specifically to facilitate the hiring of highly specialized health care providers, primarily physicians, that typically demand a high rate of compensation than that generally offered by the services. Legislation that authorized increased use of such contracts for health care services simultaneously mandated wage ceilings. Some economic impacts of wage ceilings in labor markets are presented. Shortages and a loss of military surplus are likely to be associated with wage ceilings. Recent data concerning personal services contracts are presented and examined, the result of the data evaluation provides some surprises. First, many personal services contracts are not being utilized as originally intended. In fact very few are actually used for physicians' services. Second, there is an appearance of impropriety in some of these contracts.
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This publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
URI
http://hdl.handle.net/10945/27663
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