Physician-Based Group Insurance

Abstract

IN our system of health care, individual doctors direct most medical expenditures, whereas administrators try to control costs through persuasion or regulation. This system predictably wastes money and time in conflicts between physicians and administrators. If those responsible for cost control do not interfere with the care of patients, physicians tend to overspend. On the other hand, the quality of medical care is threatened when administrators can modify the medical decisions of physicians.This paper is a proposal for controlling medical costs that does not depend on detailed regulatory control. In developing this plan, which I call "Physician-Based Group Insurance" . . .