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May 20, 2008
First the good news: if physicians receive cash rewards for reducing overall hospital costs, they reduce overall hospital costs. Amazing. See the study in Health Affairs. [gated, but has summary]
Now, the bad news: except for a handful of cases - receiving special dispensation from the federal government - this practice is illegal everywhere else. (Meaning, you-could-go-to-jail illegal.)
One Response to “Incentives are Against the Law”
May 29th, 2008 at 8:24 am
All due to the Stark Amendment – which inhibits many types of beneficial collaboration between doctors and hospitals. How could the health care system survive without government protection from evil of all evils: the profit motive?