Self-serving investment practices of doctors
Privatization of medical services
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.
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.
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.