Bingo, David:
It is not surprising that doctors will order more tests if they profit from testing. However, even if doctors get no profits from tests a huge problem remains – doctors are ordering tests using “other people’s money” and have little incentive to economize. Spending due to tests being seen as costless is likely to be much greater than spending due to doctors profiting from testing.
Even if there were no financial incentives, the advantages (including lessening the threat of malpractice and patient satisfaction) greatly outweighs the downside.
