News Headlines Article

Healthcare reform and the incentive to keep spending
Los Angeles Times

Reforming the healthcare system is largely about fixing the incentives it provides for doctors, hospitals and patients to overspend. For example, the “fee for service” payment model that Medicare relies on encourages physicians to do as many things for a patient as they can bill for — the more services provided, the higher the compensation. That’s a model that profits from sickness, not health.