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How Perverse Incentives Drive Up Health Care Costs

Posted: January 15, 2014

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Medical treatment in the emergency room is expensive, but there's a perverse incentive at work which encourages EMS workers to send more people there. Medicare reimburses for 911 calls only if the patient is transported to the ER. A pilot program at Mt. Sinai Hospital in New York City tries to keep patients from coming back to the ER.

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

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