A study that forecast the consequences of the projected growth in the number of practicing U.S. physicians during the 1980s and beyond is summarized. Attention was directed to the potential impact of the increasing supply of physicians on physician behavior, the cost of medical services, and access to services. Econometric modeling and analysis of economic activity within the health sector were undertaken. A four-equation model of the physician and hospital service market and a three-equation model of the dental service market were employed. Subsidiary modules covered: registered nurse graduates, general hospital beds, and annual medical and dental school enrollments. A disequilibrium model of the geographic diffusion of new additions to the stocks of physicians and dentists was also used. Attention is directed to: modeling assumptions, private sector demand, government expenditure functions, supply of physician and hospital services, and equilibrium in hospital and physicians markets. Forecasts are presented regarding: cost of physician and hospital services, total expenditures on hospital and physician services, real private insurance expenditures and government expenditures on physician and hospital services, third party reimbursements, and out-of-pocket expenditures. Findings are summarized. (SW)