Chapter 003. Decision-Making in Clinical Medicine (Part 5)
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Economic Incentives Economic incentives are closely related to the other two categories of practice-modifying factors. Financial issues can exert both stimulatory and inhibitory influences on clinical practice. In general, physicians are paid on a feefor-service, capitation, or salary basis. In fee-for-service, the more the physician does, the more the physician gets paid. The economic incentive in this case is to do more. When fees are reduced (discounted fee-for-service), doctors tend to increase the number of services billed for. Capitation, in contrast, provides a fixed payment per patient per year, encouraging physicians to take on more patients but to provide...
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