Healthcare costs arise from the accumulation of individual decisions doctors make about which services and treatments to order. True or false?

• A. True
• B. False
• C. Not specified
• D. Only for specialists

Answer: (A)

Healthcare costs are shaped by the aggregate of clinicians' ordering decisions. Every test, imaging study, prescription, or procedure carries a price, and the sum of these decisions across many patients drives overall spending. When doctors order more services, choose pricier options, or perform tests that add little value, costs rise. Conversely, following evidence-based guidelines and avoiding low-value care can help contain costs. While there are other factors that influence spending—such as prices, administrative overhead, and patient demand—the way individual ordering decisions accumulate across patients is a central way that costs are generated in the system.