Induced Demand in Health Services

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.

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.

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.

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.