A Physician Practices Oncology in a Suburb 15 Miles Outside

question 100

Multiple Choice

A physician practices oncology in a suburb 15 miles outside of a large city.  She presently refers patients in need of special imaging studies to one of two centers in the city depending on the patient's home location and medical history.  Recently, a respected radiologist informs the physician that he has joined a for-profit imaging center with the latest equipment and technology.  The company is considering opening a new location in the physician's area.  The radiologist states that this center would provide the highest quality of care and that an opportunity now exists to invest in this new center.  He adds that more local investors will increase the likelihood that the company will locate their new center in the physician's suburb.  The physician is interested in investing in the new center.
Which of the following most accurately describes the conflict of interest regarding the physician's referral practices and potential investment in this center?

• A)There is a conflict of interest and referrals to the center would be prohibited by law
• B)There is a conflict of interest and the physician's investment should be disclosed to patients
• C)There is no conflict of interest as the new center would provide enhanced quality of care
• D)There is no conflict of interest if the physician also provides referrals to other radiology centers
• E)There is no conflict of interest, provided the physician does not preferentially recommend this center

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Definitions:

Product Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Inelastic Demand

A situation in which the demand for a product or service is relatively unaffected by changes in price.

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An establishment where automobiles are repaired by auto mechanics, offering services from routine maintenance to more extensive repairs.

Intangibility

A characteristic of services that makes them unable to be seen, touched, or quantified before they are purchased and used.