Docs on Salary = Less Non-Beneficial Treatment
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KevinMD, observing that one of the reasons that large, integrated health systems (e.g. Mayo Clinic, Kaiser Permanente, or the Cleveland Clinic) are able to hold down costs is because they put their doctors on salary. Putting doctors on salary divorces payment from volume of care, eliminating (at least one) incentive to do more (or do too much).
But KevinMD notes that salaried docs form only a minority of care delivered in the country. Most doctors in the United States practice in small group settings, which makes it difficult to impose a salary. "Although that trend is changing . . . it’s still going to be awhile before doctors are part of the larger systems that can impose a salaried payment structure on physicians."
KevinMD, observing that one of the reasons that large, integrated health systems (e.g. Mayo Clinic, Kaiser Permanente, or the Cleveland Clinic) are able to hold down costs is because they put their doctors on salary. Putting doctors on salary divorces payment from volume of care, eliminating (at least one) incentive to do more (or do too much).
But KevinMD notes that salaried docs form only a minority of care delivered in the country. Most doctors in the United States practice in small group settings, which makes it difficult to impose a salary. "Although that trend is changing . . . it’s still going to be awhile before doctors are part of the larger systems that can impose a salaried payment structure on physicians."