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KMID : 1024820150030010001
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Journal of Korean Academy of Dental Administration
2015 Volume.3 No. 1 p.1 ~ p.20
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Regional selection of dental practices in terms of the competition between dental practices and the distribution of revenues
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Choi Hyung-Kil
Kim Myeng-Ki
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Abstract
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We can achieve the efficient use of health care human resources with evaluating the competition between dental practices in specific area. Some problems had been reported for use of the Herfindahl-Hirschman index(HHI) as an exogenous competition variable in empirical studies for the private medical sectors. In this paper, we conduct the correlation analysis with various competition and revenue variables to find the most suitable parameter representing the competition in the area. The result showed that the number of dental practices(NC2) was the best indicator which represents the competition and the revenue distribution. As the number increases the revenue of the upper ranked practice is growing rapidly, while the revenue of the lower was decreasing. And the mean of revenue tend to be the highest in the area which had 63 dental practices although the coefficient of determination was low. With the simple non-linear regression results, it was possible to predict the maximum and minimum revenues in the area.
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KEYWORD
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The number of dental practices, Herfindahl-Hirschman index, Competition, Revenue distribution
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