Perspectives health economics in Canada.

Doctor A has always been paid using a 'fee for service' system. His province now switches to paying doctors using a 'capitation system.' First, explain the difference between these 2 systems. Second, explain if/how economists predict Doctor A may adjust his behavior following the implementation of the new program.

References. (Only indicated pages)

Gender, Family Status, and Physician Labour Supply

Chang, Wao and Sweetman, Arthur. 2013. "Gender, family status, and physician labor supply." Social Science and Medicine 94: 17-25.

https://www.sciencedirect.com/science/article/pii/S0277953613003493

Fee for Service, Capitation, and Physician Behaviour

Zhang, Xue and Sweetman, Arthur. 2018. "Blended capitation and incentives: Fee codes inside and outside the capitated basket." Journal of Health Economics 60: 16-29.

https://www.sciencedirect.com/science/article/pii/S0167629617304320