The "Hassle Factor"

Abstract

IN AN EFFORT TO CONTROL health care costs, many third-party payers have developed mechanisms to limit physicians' abilities to order expensive tests, treatments, or referrals for their patients. In many cases, these restrictions are used to guide physicians away from unnecessary medical services, such as expensive interventions that bring no more benefit than less expensive ones. In other cases, restrictions encourage physicians to make cost-quality tradeoffs, such that expensive services that bring marginal benefits are foregone in favor of less expensive services.