"Every year, medical students apply for residencies at hospitals around the country
through the National Resident Matching Program. It's like a dating app for med students and hospitals, and it culminates this Friday, which is Match Day, when more than 30,000 students find out who they've got a really long date with."
"Some people view Match Week as a beautifully engineered dance between supply and demand that ensures the best and brightest learn how to be good doctors at top hospitals. Others, like Dean Baker, Senior Economist at the Center for Economic and Policy Research, say this residency system makes health care dramatically more expensive for Americans. A 2011 study in Health Affairs found American doctors, who make an average salary of almost $300,000, are paid around twice as much as doctors in other rich countries."
"Baker says 'doctors are seriously overpaid' and a big reason is rules that restrict the number of people who can get residencies. He calls these rules the work of 'a cartel,' and in economics, those are fighting words. A cartel limits the supply of something in order to increase the amount of money they can charge. The Organization of the Petroleum Exporting Countries, or OPEC, is a classic example."