Healthcare Management- Ethical Dilemmas: Finance and Ethics Analysis

This report analyzes a healthcare management case study centered around ethical dilemmas arising from financial incentives in medical imaging. The case involves Westwood Imaging's proposal to lease diagnostic equipment to physicians, potentially creating conflicts of interest. The analysis explores whether patients are harmed by such arrangements, considering increased costs and potential overutilization of services. The report evaluates the ethical implications of Westwood's proposal, focusing on whether it presents ethical issues, particularly for physicians who may be influenced by financial gains. The report concludes with recommendations for an ultimate authority, suggesting transparency regarding relationships between physicians and imaging centers, and the potential for providing leased equipment while ensuring public awareness of the terms. The report references several academic sources to support its claims and provides a comprehensive overview of the ethical issues at hand.

Running head: HEALTHCARE MANAGEMENT- ETHICAL DILEMNAS 1
Healthcare Management- Ethical Dilemmas
Name
Institution of Affiliation

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1. Does anyone get hurt by such arrangements? It is hard to believe that the increased cost
to insurers is medically justified.
When doctors are incentivized to make decisions based on receiving a profit for
themselves their patients can get hurt by these arrangements. In this case study, sick persons may
be overspending their money which should not be the case when carrying the medical imagining
that they may not need. The patients are negatively affected because they are unaware that their
doctor may have other motives other than providing them with the best care. Naturally it very
painful to the human race when one realizes that someone was taking interest in them due to a
lack of knowledge and trying to make a profit from it. Patients are the most because the Doctors
are supposed to be protecting their interests, (Truog, 2012) but in this case, it is like a sold-out
situation. The case study even referenced that the large majority of research carried out shows
that utilization of services increases when doctors have financial incentives to provide imaging
services. Meaning the Doctors are taking interest in the situation to ensure there is a personal
benefit at the expense of patient cost. Patient are made to remit increased interests to insurance
companies as a result of being overcharged for medical services by dubious traders like
Westwood Imaging center. Additionally, patients may get substandard services from service
lenders like Westwood Imaging Centre, because as for them they are concerned with numbers of
patients visiting them who add up to profits.
What do you think about Westwood’s proposal to provide physicians with “leased”
diagnostic equipment?
My thought on Westwood’s idea is that he is going above and beyond to use a legal
loophole for individual gain. Even though it’s a smart decision on Westwood’s part in regards to
making the doctors sublease the equipment regardless of the number of referrals sent over, it is a

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naïve act. Westwood imaging Centre proposal is unethical because is using their financial
capability to persuade the physicians to honor back by referring patients for imaging
(Muthalagappan et al 2013). Though from a consumer standpoint it just seems dishonest. I would
not be comfortable knowing this as a patient who was referred to Westwood for imaging.
Additionally from a business mind view, it is a good proposal by Westwood imaging Centre to
lease out the equipment for diagnosis, which is relatively cheaper, considering their higher cost
that is more than 100 billion US dollars. The physicians cannot afford imaging equipment on
their own because of the cost. This proposal also is an evidence of an underperforming health
system that allows parties to engage in local deals in the expense of critically services like health.
Does this case present an ethical issue? If so, to which party (or parties)
Yes, it does present an ethical issue in referring to the Doctors. Doctors are trained to
give service and put patients’ needs a priority. In this case study, the Doctors are in a dilemma as
they are put a task in choosing between either to offer better services for their patients or
generate income for individual use, (In Dearie, In Meth, & In Westbrooks, 2018). Moreover, an
ethical issue may arise if Westwood Imaging Centre is the only imaging service provider getting
referrals from the Doctors. This would create a monopoly. Unfavorable competition against other
service providers on the same. Also, the evidence that Westwood Imaging Centre is paying to get
a patient referral is unjustified and unethical and this threatens the basic principles of medical
care of access to right and reliable services (Gapenski, & Pink, 2014). Besides, the incident in
which Westwood imaging is paying to get patient referrals outlines an act of financial and non-
related incentives.
If you could act as the ultimate authority in this situation, what would you do?

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Given the power to rule on this case, under my jurisdiction I would advise the physicians
together with their employers to make it open to the public the kind of relationship or accord
they have with the Westwood Imaging Centers. To my knowledge this doing would take the
stress off of the doctors because at least then their patients will have relevant information and
that may guide them when making choices (Adhikari et al., 2016). This could also boost patient
confidence in their doctor’s decision regarding taking medical images. Additionally, I would
give a go-ahead to Westwood imaging center to be providing “leased” equipment to the Doctors,
considering Westwood is leasing them relatively at a cheaper cost considering the higher cost of
buying this equipment by the physicians. Though this decision will be guided by the fact that
Westwood Imaging Center and Doctors will make open to the public the terms of engagement on
which they work.

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References
Adhikari, S., Paudel, K., Aro, A. R., Adhikari, T. B., Adhikari, B., & Mishra, S. R. (2016).
Knowledge, attitude and practice of healthcare ethics among resident doctors and ward
nurses from a resource poor setting, Nepal. BMC Medical Ethics, 17(1).
Gapenski, L. C., & Pink, G. H. (2014). Cases in healthcare finance.
In Dearie, T. N., In Meth, M., & In Westbrooks, E. L. (2018). Academic library management:
Case studies.
Muthalagappan, S., Johansson, L., Kong, W. M., & Brown, E. A. (2013). Dialysis or
conservative care for frail older patients: ethics of shared decision-making. Nephrology
Dialysis Transplantation, 28(11), 2717-2722.
Truog, R. D. (2012). Patients and Doctors — The Evolution of a Relationship. New England
Journal of Medicine, 366(7), 581-585.