Monday, January 14, 2013

Physician Incentives

The New York Times reports that a Baltimore physician has implanted hundreds of patients with cardiac stents that were medically unnecessary, and was closely tied with Abbott Laboratories, a maker of cardiac stents.  As we will discuss in class today, there are incentives for physicians to perform more medical procedures as their income is tied to the amount of medical services they perform as opposed to the results of their performance - which is less tied to their labor services.

No comments: