The Costly Impact of Physican Ownership of Medical Equipment

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CostDrug and Device Cost ContainmentPolicy Implementation

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The Center for Studying Health System Change data bulletin entitled Physician Ownership of Medical Equipment finds that  self-referrals by physicians owning or leasing medical equipment fuels unnecessary utilization and contributes to the high cost of care in the United States. The piece highlights the challenges policymakers face in addressing the problems associated with medically unnecessary “self-referrals”  by physicians to facilities and services in which they have a financial interest.  Health System Change specifically identifies the policy weaknesses in the 1989 Stark Act’s related prohibitions  and potential for change under the ACA.  The Center for Studying Health System Change is an independent, nonpartisan policy research organization that designs and conducts studies on the United States health care system.

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