Objective: To investigate the impact of family physician (FP) supply on individual health, adjusting for factors that affect both health and FPs' choice of location.
Study population: A total of 49,541 individuals in 351 English local authorities (LAs).
Data sources: Data on individual health and personal characteristics from three rounds (1998, 1999, and 2000) of the Health Survey for England were linked to LA data on FP supply.
Study design: Three methods for analyzing self-reported health were used. FP supply, instrumented by house prices and by age-weighted capitation payments for patients on FP lists, was included in individual-level health regressions along with individual and LA covariates.
Results: When no instruments are used FPs have a positive but statistically insignificant effect on health. When FP supply is instrumented by age-related capitation it has markedly larger and statistically significant effects. A 10 percent increase in FP supply increases the probability of reporting very good health by 6 percent.
Conclusion: After allowing for endogeneity, an increase in FP supply has a significant positive effect on self-reported individual health.