Managers and physicians come head to head over cost control.

Although physician services account for approximately 22 percent of personal healthcare expenditures, 70 to 80 percent of all healthcare resources are allocated according to physician decisions. Therefore, physician motives and behavior must be understood by the financial manager. Profit, duty, and self-defense all interact to influence how the physician will respond to a particular situation. Financial managers should play an active role in helping physicians concentrate on the duty to serve the patient's best interests through judicious resource use.