Provider Created Demand and Cost of Treating Non-Fatal Road Traffic Injuries in Kerala, India

Abstract

Context: Provider-created demand has been found to be a component of out-of-pocket payments and consequent financial burden. Road traffic injuries are a classic case of medical uncertainty where treatment interventions could be induced especially when the provider’s income is dependant on the quantity of care provided. The debate on the existence and form of SID continues unabated for the last three decades with no clear signs of a consensus. The paper argues that under conditions of uncertainty and imperfect competition in health care market, SID is quite likely and it is possible to detect.