Using Performance Incentives to Improve Medical Care Productivity and Health Outcomes
AbstractWe nested a large-scale field experiment into the national rollout of the introduction of performance pay for medical care providers in Rwanda to study the effect of incentives for health care providers. In order to identify the effect of incentives separately from higher compensation, we held constant compensation across treatment and comparison groups â€“ a portion of the treatment groupâ€™s compensation was based on performance whereas the compensation of the comparison group was fixed. The incentives led to a 20% increase in productivity, and significant improvements in child health. We also find evidence of a strong complementarity between performance incentives and baseline provider skill.
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Bibliographic InfoPaper provided by Institute of Industrial Relations, UC Berkeley in its series Institute for Research on Labor and Employment, Working Paper Series with number qt9qn9q7ph.
Date of creation: 12 Feb 2013
Date of revision:
Medicine and Health Sciences; Performance Incentives; Results-Based Financing; Pay-for-Performance; Child Health; Maternal and Child Services;
Other versions of this item:
- Paul Gertler & Christel Vermeersch, 2013. "Using Performance Incentives to Improve Medical Care Productivity and Health Outcomes," NBER Working Papers 19046, National Bureau of Economic Research, Inc.
- I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
- J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods
- O12 - Economic Development, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-04-13 (All new papers)
- NEP-EFF-2013-04-13 (Efficiency & Productivity)
- NEP-EXP-2013-04-13 (Experimental Economics)
- NEP-HEA-2013-04-13 (Health Economics)
- NEP-HRM-2013-04-13 (Human Capital & Human Resource Management)
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