When controlling the type of supply, increasing the amount of generalists could contain costs because.

Question

Options

• AGeneralists earn lower incomes than specialists
• BGeneralists practice resource-intensive medicine and generate lower overall health care
• CGeneralists use less hospital and laboratory services
• DAll of the above

• A
  9% (3)
• B
  6% (2)
• C
  3% (1)
• D
  82% (28)

Explanation

Option D is correct because all three choices describe legitimate mechanisms by which a higher proportion of generalists in the health system reduces overall expenditure. Choice A is valid because generalist physicians command lower salaries than specialists, directly reducing labor costs in the system. Choice C is valid and closely related to B - generalists are less likely to refer patients to expensive diagnostic tests, laboratories, or hospitals, keeping utilization low.

Note that Choice B as written contains an apparent error: it says generalists "practice resource-intensive medicine," which would increase costs, not contain them. The intended meaning is almost certainly the opposite - generalists practice less resource-intensive medicine - making it consistent with the "all of the above" answer. Flag this to your instructor if the wording appears this way on your actual exam.

Memory tip: Think of the "3 L's" of generalists - Lower salary, Less testing, Less hospitalization - all of which point toward cost savings when generalists make up a larger share of the provider supply.

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