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Correspondence
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Volume 334:1060-1063 April 18, 1996 Number 16
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Corporate Managed Care

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 by Woolhandler, S.
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To the Editor: In response to the editorial by Drs. Woolhandler and Himmelstein (Dec. 21 issue),1 we would like to point out that financial incentives have always been a part of fee-for-service medicine — a reality that seems to have been ignored until the recent growth of managed care. Fee-for-service medicine rewards the volume as opposed to the outcome of care provided. Although more care does not necessarily lead to better outcomes, this perverse incentive is inherent in fee-for-service medicine. Unless one advocates a system in which physicians are paid a fixed compensation by the government, as proposed by the . . . [Full Text of this Article]

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