i’m not sure about Australia’s degree of government intervention
into the medical system
BUT I would expect this result. The more government interferes in
the free market,the lower the fees to the physician. This reduces quality
of physicians. Since physicians take 4 years college, 4 years med school,
3 years residence before they start earning their real wage, I would expect
a high salary. At least $100,000.
Milton Friedman would have a simple explanation.
These economists are making the case for price controls, a fundamental element of government control of any industry, especially health care. The market should determine the appropriate prices for health care services including doctor fees. These economists are comparing US medical care to government controlled health care having price controls. Some have argued that supply control has enabled high doctor fees in the US. I support reducing artificial restrictions on supply of physicians. Price controls will only bring shortages. Other countries have physician shortages especially at the specialist level. In addition, physicians game the system to bypass the price controls using tactics like forcing patients to come for multiple visits when a single visit would suffice.