On his "Carpe Diem" blog economics professor Mark Perry writes that one reason doctors in America make good money, and that health care costs seem to be high, is that there is a restriction on the supply of doctors because of a "medical cartel," the American Medical Association that accredits medical schools. There are a limited number of medical schools producing a limited number of graduates each year, and those medical schools accept far fewer students than apply. Mr. Perry says that increasing the number of medical schools to 200 from 130 "would probably go a long way to solving our 'health care crisis.'"
Well, it might reduce costs, though all those medical school graduates would then need to have residencies at academic medical centers, which, under the current system, the federal government subsidizes to the tune of $8.8 billion a year. And, if we are interested in increasing health care quality, do we really want to lower the standards of admission at medical schools?
The comments string on the Carpe Diem post is worth a look, too.