IDEAS home Printed from https://ideas.repec.org/p/hhs/bergec/2008_001.html
   My bibliography  Save this paper

Paying for Performance in Hospitals

Author

Listed:
  • Hehenkamp, Burkhard

    (Department of Economics and Social Sciences, University of Dortmund)

  • Kaarbøe, Oddvar

    (Department of Economics and Health Economics Bergen, University of Bergen)

Abstract

A frequent form of pay-for-performance programs increase reimbursement for all services by a certain percentage of the baseline price. We examine how such a “bonus-for-quality” reimbursement scheme affects the wage contract given to physicians by the hospital management. To this end, we determine the bonus inducing hospitals to incentivize their physicians to meet the quality standard. Additionally, we show that the health care payer has to complement the bonus with a (sometimes negative) block grant. We conclude the paper relating the role of the block grant to recent experiences in the American health care market.

Suggested Citation

  • Hehenkamp, Burkhard & Kaarbøe, Oddvar, 2008. "Paying for Performance in Hospitals," Working Papers in Economics 01/08, University of Bergen, Department of Economics.
    • Handle: RePEc:hhs:bergec:2008_001
    as

    Download full text from publisher

    File URL: http://ekstern.filer.uib.no/svf/2008/wp01-08.pdf
    File Function: Full text
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aida Isabel Tavares, 2014. "Doctor-Nurse Teams, Incentives and Behavior," Notas Económicas, Faculty of Economics, University of Coimbra, issue 39, pages 9-35, June.

    More about this item

    Keywords

    Paying-for-Performance; Quality; Hospital Financing;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health
    • J33 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Compensation Packages; Payment Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:bergec:2008_001. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kjell Erik Lommerud (email available below). General contact details of provider: https://edirc.repec.org/data/iouibno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.