Restructure Medicare & Medicaid: Legal Forces that Push Up
Healthcare Spending
1) Defensive Medicine
2) Possible Solutions
KP i USA Inc. | What Might a Turnaround Expert Consider? 311
Restructure Medicare & Medicaid: Legal Factors—
“Defensive Medicine” Drives up Healthcare Spending
¢« Defensive Medicine consists of procedures or tests that a doctor orders to avoid possible future malpractice lawsuits.
¢ The practice is prevalent among US physicians and is contributing factor to healthcare spending. According to a survey of 824 physicians in 2005': - 93% said they had engaged in the practice of Defensive Medicine - 59% said they often ordered more diagnostic tests than medically necessary - 52% said they referred patients to other specialists in unnecessary circumstances - 33% said they often prescribed more medications than medically necessary
Source: 1) David Studdert, et al., American Medical Association, “Defensive Medicine Among High-Risk Specialist Physicians
K P in a Volatile Malpractice Environment,” 6/2005. a USA Inc. | What Might a Turnaround Expert Consider? 312
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