Why fee-for-service should be abolished

Doctors should be paid by salary, not fee-for-service, argue two behavioural economists.

Outlining the problems with fee-for-service arrangements in the US, the authors say these “compensation schemes” create perverse incentives for doctors to operate in ways that are not in patients’ best interests.

Fee-for-service is the system upon which Australia’s Medicare is based and is also predominantly used in the US. However, many US doctors are now paid a salary, as are almost all