[pfranz]

> they don't want the competition because it will have a negative effect on its members' incomes.

Is it the perception that increased competition will have negative effects on members' incomes or is that actually true? I swear I remember a story, study, allegory about a second doctor moving to town and both incomes went up.

[huitzitziltzin]

> Is it the perception that increased competition will have negative effects on members' incomes or is that actually true?

Generally true in other areas. Health care is not that exceptional a market, though it is exceptional in several respects. We do generally observe in health care specifically that increases in market concentration increase prices.

> I swear I remember a story, study, allegory about a second doctor moving to town and both incomes went up.

I'll take a look if you can find it. It's possible. One story I can imagine would be something like: First Doctor can see more patients b/c he can send his more complicated patients to Second Doctor's specialty practice. And Second Doctor moved from a smaller town w/ fewer patients in the specialty.

In the aggregate and outside of special cases more supply will bring prices down.

[zozbot234]

In theory, it could go the other way. More supply, better specialization among doctors, higher productivity at the margin, more income. The final effect is ambiguous. What is true is that patients would benefit, even if doctors were to earn more after all.