Rational Remuneration

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Abstract
Remunerating physicians on the basis of "usual, customary or reasonable" fees has led to abuses and contributed to the precipitous escalation of health care costs.1 However, recent developments indicate that major changes are imminent. The Health Care Financing Administration is in the process of developing a new system of physician payment to complement that now in use for hospital remuneration,2 and the health insurance industry is adopting physician remuneration plans (e.g., "preferred provider" organizations) to decrease health care costs.Understandably, most physicians are satisfied with the present system and are more inclined to resist change than to participate in forming . . .

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