Truth or Consequences

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Abstract
Several years ago, I served as a panelist at a conference on health care ethics at a university-affiliated community hospital. The chief of orthopedic surgery asked my opinion of a proposal made to him by the hospital's chief executive officer (CEO). The CEO explained that the hospital was losing money on hip-replacement surgery, because the payment the hospital received from Medicare, which paid for nearly all hip replacements, was less than the hospital's cost. A major component of the cost was the price of the hip prosthesis. The CEO requested that the orthopedic surgeons use a much less expensive prosthesis . . .

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