Asymmetric Knowledge

      Asymmetric knowledge is a major part of the healthcare services system. Physicians have so much knowledge about the illnesses or diseases that patients present with at the hospital. This often results in provider-induced demand, which is unique to the healthcare system and not part of the conventional market. The patient goes to the hospital with a minor complaint, and the physician prescribes many tests and other diagnostic procedures. Discuss how managed care plans are controlling provider-induced demand.