Tuesday, April 26, 2011

Paying Physicians to Reduce Health Care Expenses

Health care insurers are experimenting with a new idea to lower health care costs: paying physicians to follow standard cancer treatments instead of individualized or unproved treatments. Here is a unique example of how to change incentives (i.e. choose standard care at a lower cost) in the health care arena. This idea is not without it's detractors as you can read in the article linked in this blog. Yet, if the analysis is correct that patient care is not affected, and health care costs are reduced, this sounds as like a more cost-effective way of allocating health care.

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