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How to Pay Family Doctors: Why "Pay per Patient" is Better Than Fee for Service

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Author Info

  • Ake Blomqvist

    (Carleton University)

  • Colin Busby

    (C.D. Howe Institute)

Abstract

Physician compensation accounts for about one-fifth of all Canadian healthcare spending. But physicians’ decisions, particularly those made by primary care doctors, are the conduit for the majority of the system’s costs. The incentives physicians have to promote efficiency, therefore, affect the overall quality and value of healthcare services. We believe that a remuneration model for primary care doctors that emphasizes per-patient payments is the best way for health systems to pay its front-line doctors, although it is less applicable to specialists. Further, we believe that over time the capitation scheme could be extended so that primary care physicians would keep track of the costs of their referrals and prescribed treatments, to encourage the most appropriate and cost-effective methods of treatment and make better use of total health system resources.

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File URL: http://www.cdhowe.org/pdf/Commentary_365.pdf
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Bibliographic Info

Article provided by C.D. Howe Institute in its journal C.D. Howe Institute Commentary.

Volume (Year): (2012)
Issue (Month): 365 (October)
Pages:

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Handle: RePEc:cdh:commen:365

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Related research

Keywords: Social Policy; Health Policy; Canada; healthcare spending; physicians' compensation;

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  1. Åke Blomqvist & Pierre Thomas Léger, 2003. "Information Asymmetry, Insurance, and the Decision to Hospitalize," Departmental Working Papers wp0305, National University of Singapore, Department of Economics.
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