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Examines trends among Swedish physicians since the introduction of internal market reforms in the delivery of health care and assesses the impact of the use of a performance‐based reimbursement system on the practice of medicine. Explores the views of physicians with the use of the DRG system. The research data came from a mailed survey of physicians randomly selected from three major hospitals in Stockholm. Questionnaires were mailed between May 2001‐July 2001 to 100 physicians in active practice and the response rate was 46 per cent. The results suggest that these measures have affected the way physicians practice medicine. Physicians have become more cost‐conscious than before and most were less likely to recommend the profession to immediate family members. These findings are consistent with studies conducted by Forsberg on the impact of financial incentives on Swedish physicians. While some general dissatisfaction with working conditions was noted, most of the respondents were supportive of the reform measures initiated in Sweden.

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