Federal and private insurers across the country are carrying out an experiment to cut healthcare costs by increasing physicians’ pay, The New York Times reports.

 

The experiment stems from the theory that if physicians are compensated for giving increased attention and care to their patients, unnecessary tests, specialist-visits, and hospital trips can ultimately be avoided, thereby saving thousands for both patients and insurers.

 

Medicare and Medicaid are also evaluating the concept. According to The New York Times, a North Carolina Medicaid experiment already taking place saved the program about $162 million in 2006.

 

To read the full report in The New York Times, click here.