Problem

Commercialization of medical practice

Other Names:
Self-serving investment practices of doctors
Privatization of medical services
Nature:
In the last decade, doctors have formed thousands of partnerships and joint ventures to which they refer patients for X-rays, laboratory services, outpatient surgery and medical equipment. These encourage the overuse of expensive medical services and procedures.
Incidence:
In the USA, no more than 40% of a business may be owned by doctors or hospitals in a position to refer patients to the enterprise, and no more than 40% of the revenue may come from referrals by such investors.
Claim:
The health payment system can discourage doctors from doing the right thing. Physicians who give high-quality care that controls diabetics' blood sugar see their incomes fall as those patients' need for more expensive care declines -- and insurers pocket the savings.
Problem Type:
E: Emanations of other problems
Date of last update
05.03.2001 – 00:00 CET