Can You Get What You Pay For? Pay-For-Performance and the Quality of Healthcare Providers
Despite the popularity of pay-for-performance (P4P) among health policymakers and private insurers as a tool for improving quality of care, there is little empirical basis for its effectiveness. The authors use data from published performance reports of physician medical groups contracting with a large network HMO to compare clinical quality before and after the implementation of P4P, relative to a control group. They consider the effect of P4P on both rewarded and unrewarded dimensions of quality. In the end, they fail to find evidence that a large P4P initiative either resulted in major improvement in quality or notable disruption in care.
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"Is More Information Better? The Effects of 'Report Cards' on Health Care Providers,"
NBER Working Papers
8697, National Bureau of Economic Research, Inc.
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Journal of Health Economics,
Elsevier, vol. 21(2), pages 337-353, March.
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- Uri Gneezy & Aldo Rustichini, 2000. "Pay Enough Or Don'T Pay At All," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 791-810, August.
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