Background & Aims: Ineffectiveness of the supply sector due to the behavior of health service providers can lead to demand for patients and increase health care costs. The purpose of this paper is to identify the factors affecting the reduction of induced demand specifically from the viewpoint of health service providers in hospitals of the University of Science Medical and health services of Iran. Materials & Methods: The present study was carried out qualitatively in year 96. Semi-structured interview was used to collect data. To this end, 27 officials and managers of hospitals and educational centers of Iran University of Medical Sciences and Health Services were selected using a targeted sampling approach. Content analysis method was used for data analysis and Atlas-Ti software was used to categorize them. Results: Data analysis led to the identification of 6 categories and 40 sub categories. These categories included economic factors, monitoring, service delivery structure, educational factors, policy-making factors, and social factors affecting the reduction of induced demand. Each of these categories also had sub-categories. Conclusion: The results of this study indicate that there are several factors in Iran's health care system that are effective in reducing inductive demand, including global payment methods for physicians, deductions and adjustments by insurers. There are other healthcare providers who can help policy makers to design and organize new strategies for reducing inductive demand in the healthcare system.  

Keywords: Induced Demand, Health services, Health care costs

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