Final answer:
Reducing a physician's risk of lawsuit involves following the principle of nonmaleficence to avoid harming patients and adjusting healthcare provider incentives by shifting from fee-for-service models to HMOs to focus on providing necessary and quality care.
Step-by-step explanation:
The concept described refers to reducing the physician's risk of lawsuits in a medical setting. This can be achieved through various means, including adherence to the principle of nonmaleficence, which obligates healthcare providers to avoid causing harm to patients.
Physicians must ensure that any potential harm is minimized and that patients undergo only necessary procedures or treatments that are essential for effective treatment. Another method to reduce risk is to alter healthcare provider incentives.
Transitioning from a traditional fee-for-service model to a structure with an emphasis on health maintenance organizations (HMOs) can decrease moral hazard by incentivizing providers to focus on the quality rather than the quantity of care, thereby potentially reducing incidents that could lead to lawsuits.