Here's a good article about how paying doctors salaries instead of fees helps keep health care costs down. Right now in most facilities there are incentives to increase tests even if they are unnecessary. I doubt that this is going to cause better care as the article seems to be saying but in terms of cost savings, it is a home run. Why more institutions aren't doing this is amounts to fraud IMO.
Doctors in the United States are usually paid fees for each service they provide. The more procedures and tests they order, the more money they pocket. There is widespread agreement among health policy analysts that many of these procedures are unnecessary, raising costs in ways that often do nothing to improve patient health.
By contrast, Bassett — like the Cleveland Clinic and a small number of other health systems in this country — pays salaries to all of its doctors. No matter how many tests or procedures are performed, they take home the same amount of money. Medical costs at Bassett are lower than those at 90 percent of the hospitals in New York, while the quality of care ranks among the top 10 percent in the nation, surveys show.