Does Universal Occupational Licensing Recognition Improve Patient Access? Evidence from Healthcare Utilization

This paper examines the impact of universal reciprocity of out-of-state physician licenses on the regional labor supply of physicians and consumers’ access to healthcare services. After adopting universal reciprocity, out-of-state practice physicians per capita increased by 0.012. Respondents with personal doctors or healthcare providers increased by 6.0 percentage points, and those having medical cost issues decreased by 1.5 percentage points among working-age individuals. Residency requirements for license reciprocity serve as barriers to improving access to healthcare services. Reducing regulatory barriers could achieve regional equilibrium and enhance both consumer and worker welfare in healthcare.