Originally posted by claudetnt:
Now, is it possible that in some government hospitals especially the senior doctors are referring patients to do unnecessary tests to recuperate the costs of all those expansive equipment they had procured or to "curry" favours with their superiors for bringing more revenue for the hospitals?
They are following certain guidelines laid out by expert committees on the way a disease should be managed. Ordering unnecessary tests does happen, but it is not to earn money, but to protect the doctor's backside. Without lab tests, doctors have to rely on their clinical skills and experience to make decisions. All the responsibility falls on them. Sometimes they make a bad decision and they can be sued. On the other hand, even if you make a bad call based on an erroneous lab result, you can blame it on the tests results and the lab.
Most patients are subsidized patients anyway, and unless you are a private patient, the hospital actually loses money on lab tests. The government provides a fixed subvention for subsidized patients and if you use it up on unnecessary lab tests and go into deficit, the hospital has to pick up the tab.
You can only earn money on the private patients. So if the intention is to earn money on lab tests, what will happen is that they overservice the private patients and deny subsidized patients even necessary tests. I don't think that is the case because doctors are afraid of being sued, and it is more likely that they would overservice patients just so that they cannot be blamed if something goes wrong. Therefore I really think the reason for unnecessary tests is because doctors don't want to be sued...they want to protect their backsides. I know that is true because I have done it myself

By the way, hospitals earn more money on operations rather than lab tests. That is why they are outsourcing X-rays and other tests to India...to cut their overheads and increase their margins. If we can earn so much from diagnostic tests, why are we so keen to send them away? No, the fact is that we lose money from these tests.
If doctors want to please their administrators, they will do more cosmetic surgery, put in breast implants and do laser keratoplasty (for shortsightedness), not order more lab tests.
BTW, I didn't realize that polyclinics charge more for lab tests than TTSH.....most polyclinic lab services are outsourced to private labs. If TTSH labs can do it motre cheaply, I cannot understand why they continue to outsource the service either...