More on the folly of cutting physician reimbursement

It never works to save money. This will lead to an increase in the volume of procedures, further driving up health care costs:

When physician fees are capped, the number and complexity (or volume and intensity) of services furnished to Medicare beneficiaries simply increase, including more frequent and intensive office visits, and a rapid increase in the use of imaging techniques, laboratory services, and physician-administered drugs, which will lead to price caps on pills and procedures in fairly short order. (According to a study by the World Bank, for every dollar that price controls reduce doctors’ fees under Medicare, physicians recoup 40 cents by increasing volume.)

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