Experts Suggest High Physician Reimbursement Contributes to U.S. Health Care Woes
Public policy debates concerning rising pharmaceutical costs and the profitability of insurance companies neglect a large part of the U.S. health care problem, according to a recent article in The New York Times. According to the article, not only are U.S. physicians paid an average of $200,000 to $300,000 per year ($400,000+ for specialists), their pay is based on the number of procedures they perform, with little incentive to actually keep anyone healthy. The practices stand in stark contrast to those of similar countries, where physicians typically work on a salary basis ($60,000 to $120,000 in Europe), within health systems that incentivize preventive care in order to avoid more serious, more expensive treatments. The article notes that though pharmaceutical costs in the U.S. are notoriously high, they are only 30% - 50% higher than those in many other countries, whereas physician salaries are often 200% - 300% higher here, despite our lackluster health outcomes.
The article also points out that doctors are paid little for "cognitive procedures" like offering advice for coping with an illness without medication, or for researching multiple treatment options. Conversely, they are often paid well for medical procedures that are unnecessary, and even for procedures which are botched.
Experts quoted in the article recommend employing more U.S. physicians on a salary basis, and adding pay incentives for better patient health outcomes, rather than for extraneous diagnostic procedures or radical treatment options.
Previously on the D.C. Metro Area Medical Malpractice Law Blog, we have posted articles related to:
- The number of physicians who don't report medical errors
- The influence of pharmaceutical companies on medical treatment
- Surgeons who don't self-report their own surgical injuries
- The uneven discipline of physicians by state medical boards