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Instead, the principal rationale has been simply that ownership leads to higher rates of demand inducement.
We would also expect additional demand inducement where manufacturing a drug product in a patient-friendly manner, amplifies the (incremental) direct health benefits derived from that drug.
This leads to the pivotal policy question regarding tradeoffs: Are the economic benefits of integration worth the potential costs incurred through demand inducement and overutilization?
The potential impact on the extent of demand inducement resulting from physician ownership of imaging services under FFS payment relates to the magnitude of the indirect payment to providers from imaging service ownership, which would be analogous to an equivalent increase in the direct provider payment for professional services [22].
Without data on treatment costs it remains difficult to accurately test the hypothesis that demand inducement is associated with the income of care providers.
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Empirical evidence shows that both moral hazard and demand-inducement are quantitatively important.
Need more inducement?
They did not allude to any requirements of "inducement" or "demand" by a public officer.
Northern Ireland has been petitioning London for the power to cut corporation tax; if it succeeds, Scotland will surely demand the same.The inducements offered to Scots will increase the pressure for changes in other parts of Britain.
This wide gap between demand and supply creates inducements to the poor to sell their kidneys to well-off patients.
The detection of inducement by comparing demand curves for public and private hospitals in such a case will be difficult since the demand curves would not be for a full episode of illness for each patient.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com