How sensitive is physician performance to alternative compensation schedules? Evidence from a large network of primary care clinics
Despite its centrality for the provision of health care, physician compensation remains understudied, and existing studies either fail to control for time trends, cover small samples from highly particular settings, or examine empirically negligible changes in reward levels. Using a four-year sample of 59 physicians and 1.1 million encounters, we study how physicians at a network of primary care clinics responded when their salaried compensation plan was replaced with a lower salary plus substantial piece rates for encounters and select procedures. Although patient characteristics remained unchanged, physicians increased encounters by 11 to 61%, both by increasing encounters per day and days worked at the network, and increased procedures to the maximum reimbursable level. Copyright © 2009 John Wiley & Sons, Ltd.
Volume (Year): 19 (2010)
Issue (Month): 11 ()
|Contact details of provider:|| Web page: http://www3.interscience.wiley.com/cgi-bin/jhome/5749|
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kathleen J. Mullen & Richard G. Frank & Meredith B. Rosenthal, 2009.
"Can You Get What You Pay For? Pay-For-Performance and the Quality of Healthcare Providers,"
680, RAND Corporation Publications Department.
- Kathleen J. Mullen & Richard G. Frank & Meredith B. Rosenthal, 2010. "Can you get what you pay for? Pay-for-performance and the quality of healthcare providers," RAND Journal of Economics, RAND Corporation, vol. 41(1), pages 64-91.
- Kathleen J. Mullen & Richard G. Frank & Meredith B. Rosenthal, 2009. "Can You Get What You Pay For? Pay-For-Performance and the Quality of Healthcare Providers," NBER Working Papers 14886, National Bureau of Economic Research, Inc.
- Devlin, Rose Anne & Sarma, Sisira, 2008. "Do physician remuneration schemes matter? The case of Canadian family physicians," Journal of Health Economics, Elsevier, vol. 27(5), pages 1168-1181, September.
- Edward P. Lazear, 1995.
MIT Press Books,
The MIT Press,
edition 1, volume 1, number 0262121883, June.
- Edward P. Lazear, 1996.
"Performance Pay and Productivity,"
NBER Working Papers
5672, National Bureau of Economic Research, Inc.
- Gaynor, Martin & Pauly, Mark V, 1990. "Compensation and Productive Efficiency of Partnerships: Evidence from Medical Group Practice," Journal of Political Economy, University of Chicago Press, vol. 98(3), pages 544-73, June.
- Sherry Glied & Joshua Zivin, 2000.
"How Do Doctors Behave When Some (But Not All) of Their Patients are in Managed Care?,"
NBER Working Papers
7907, National Bureau of Economic Research, Inc.
- Glied, Sherry & Zivin, Joshua Graff, 2002. "How do doctors behave when some (but not all) of their patients are in managed care?," Journal of Health Economics, Elsevier, vol. 21(2), pages 337-353, March.
- Frank, Richard G. & Zeckhauser, Richard J., 2007.
"Custom-made versus ready-to-wear treatments: Behavioral propensities in physicians' choices,"
Journal of Health Economics,
Elsevier, vol. 26(6), pages 1101-1127, December.
- Richard G. Frank & Richard J. Zeckhauser, 2007. "Custom Made Versus Ready to Wear Treatments; Behavioral Propensities in Physician's Choices," NBER Working Papers 13445, National Bureau of Economic Research, Inc.
- Jason Barro & Nancy Beaulieu, 2003. "Selection and Improvement: Physician Responses to Financial Incentives," NBER Working Papers 10017, National Bureau of Economic Research, Inc.
When requesting a correction, please mention this item's handle: RePEc:wly:hlthec:v:19:y:2010:i:11:p:1300-1317. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wiley-Blackwell Digital Licensing)or (Christopher F. Baum)
If references are entirely missing, you can add them using this form.