Federal and State Health Plans as well as private in

These cut backs are not the same as a physicians having to manage a budget - this is more in line with literally neglecting certain services in the interest of breaking even as per payment. The concepts of capitation, withholds, bonuses and utilization targets are all methods used by payment sources to dictate if and when hospitals or individual providers such as health clinics or doctor's offices skimp to save a buck. Consider for example the referral or gatekeeper process. When a gatekeeper decides to pass on certain tests or decides that a patient may not need to see specialists or need inpatient hospital services, he may or may not be motivated by the actual scenario because other incentives drive those referrals.

In conclusion, this report aimed to point out that existing payment processe

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