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- <text id=92TT2663>
- <title>
- Nov. 30, 1992: Making a Profit From Self-Referrals
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1992
- Nov. 30, 1992 Windsor: A House Dividing
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- THE WEEK
- HEALTH & SCIENCE, Page 26
- Making a Profit From Self-Referrals
- </hdr><body>
- <p>Ownership of clinics by doctors is helping run up the U.S.
- medical bill
- </p>
- <p> The growing trend for physicians to invest in the clinics,
- treatment centers and laboratories to which they send their
- patients -- a practice known as self-referral -- is blamed by
- many experts for contributing to excessive treatment and soaring
- national health-care costs. Two reports in the New England
- Journal of Medicine provide new ammunition for the critics. In
- one, researchers analyzed 6,581 California workers' compensation
- cases and found that physiotherapy was recommended twice as
- often by physicians with a stake in physical-therapy centers as
- by doctors who had no financial ties to the facilities.
- Moreover, 38% of body scans ordered by physicians who owned
- imaging centers were deemed unwarranted, in contrast to 28%
- requested by independent doctors. Another study of Florida
- radiation-therapy centers concluded that self-referral increased
- the frequency and cost of treatment. Moreover, researchers found
- that none of the centers were located in inner-city or rural
- areas, though service to these communities is a major rationale
- offered for doctors' ownership of health-care facilities.
- </p>
-
- </body></article>
- </text>
-
-