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Journal of Combat Medicine 10.30491/JCM.2021.150336
2021 | 4(1) | 16 Narrative Review
Induced Demand in Health Services
Ali Ramezankhani 1*, Shahram Ghaffari 2, Hannan Hajimahmoodi 3,
Seyed Hasan Emami-Razavi 4, Maryam Khayamzadeh 5
1 Professor of Medical Education, Department of Public Health, School of Public Health and Safety Shahid Beheshti University of Medical
Sciences, Tehran, Iran
2 PhD of Health Economics, Milad Hospital, Tehran, Iran
3 MD, Director General of Insurance and Revenue, Iran Health Insurance organization, Ministry of Health and Medical Education, Tehran, Iran
4 Professor of Surgery, School of Medicine, Tehran University of Medical Science, Tehran, Iran
5 Assistant Professor of Community Medicine, Academy of Medical Sciences, Tehran, Iran
Received: 28 February 2021 Accepted: 11 May 2021
Abstract
Background and Aim: Induced demand refers to performing care or unnecessary services to patients or clients of
the health system by applying power and ordering the specialists of the system. Induced demand arises as a result of
various economic and structural factors, health market factors, and the behavior of service recipients and vendors. In
our country, induced demand is one of the challenges of the health system; it increases the costs of the health sector
and reduces its efficiency. One of the main challenges in the health system is the lack of causes of problems such as
induced demand and its underlying factors. Explaining and analyzing this phenomenon can provide a clear perspective
for decision-making. According to general health policies, prevention of induced demand for medicine and medical
equipment and supplies is the responsibility of the Ministry of Health and Medical Education, but practical activities
have not been done yet. Despite the need for national applied research, we found a few credible databases about this
phenomenon and there were limited researches that do not answer the questions and challenges in basic decisions.
The aim of this study was to explain the strategies to reduce induced demand in the country's health services.
Methods: This study was done by searching credible scientific and international references with the keyword ”induced
demand” and reviewing the available upstream documents, collected information on the definitions of induced demand
and its effective causes, induced demand methods in medical services, challenges and how to control it. An expert panel
was held with 23 specialist and national experts. Findings were collected and completed and analyzed qualitatively.
Results: According to the findings, induced demand is a complex and multifactorial phenomenon that impairs the
efficiency and allocation of national resources. In addition to upsetting the balance of supply and demand in the health
market, it imposes additional costs on the patient and wastes time. This phenomenon sometimes leads to treatment
and misdiagnosis and medical complications for health system client. Structural (causes related to organizational
structure and service delivery, service recipients, and causes arising from insurance organizations) and social causes
underlie the macro causes affecting induced demand.
Conclusion: Induced demand is the result of the interaction of individual, social and organizational factors that have
social, health, and economic consequences for the community and can be prevented by using multiple strategies to
prevent induced demand in health services.
Keywords: Induced Demand, Health Services, Health System.
___________________________________________
* Corresponding Author: Ali Ramadankhani
Address: School of Public Health and Safety Shahid Beheshti University of Medical Sciences, Tehran, Iran.
E-mail: [email protected]
Copyright© 2021. This open-access article is published under the terms of the Creative Commons Attribution-
NonCommercial 4.0 International License which permits Share (copy and redistribute the material in any medium or
format) and Adapt (remix, transform, and build upon the material) under the Attribution-NonCommercial terms.
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