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Long-run effects of temporary incentives on medical care productivity

Author

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  • Celhay,Pablo A.
  • Gertler,Paul J.
  • Giovagnoli,Paula
  • Vermeersch,Christel M. J.

Abstract

The adoption of new clinical practice patterns by medical care providers is often challenging, even when the patterns are believed to be efficacious and profitable. This paper uses a randomized field experiment to examine the effects of temporary financial incentives paid to medical care clinics for the initiation of prenatal care in the first trimester of pregnancy. The rate of early initiation of prenatal care was 34 percent higher in the treatment group than in the control group while the incentives were being paid, and this effect persisted at least 15 months and likely 24 months or more after the incentives ended. These results are consistent with a model where the incentives enable providers to address the fixed costs of overcoming organizational inertia in innovation, and suggest that temporary incentives may be effective at motivating improvements in long-run provider performance at a substantially lower cost than permanent incentives.

Suggested Citation

  • Celhay,Pablo A. & Gertler,Paul J. & Giovagnoli,Paula & Vermeersch,Christel M. J., 2015. "Long-run effects of temporary incentives on medical care productivity," Policy Research Working Paper Series 7348, The World Bank.
  • Handle: RePEc:wbk:wbrwps:7348
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    References listed on IDEAS

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    1. Elise Huillery & Juliette Seban, 2014. "Performance-Based Financing, Motivation and Final Output in the Health Sector: Experimental Evidence from the Democratic Republic of Congo," Sciences Po publications 2014-12, Sciences Po.
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    4. Pedro Bordalo & Nicola Gennaioli & Andrei Shleifer, 2012. "Salience Theory of Choice Under Risk," The Quarterly Journal of Economics, Oxford University Press, vol. 127(3), pages 1243-1285.
    5. Edward L. Glaeser & Andrei Shleifer, "undated". "Gary Becker (1930?2014)," Working Paper 174291, Harvard University OpenScholar.
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    Cited by:

    1. repec:wly:hlthec:v:27:y:2018:i:1:p:e39-e54 is not listed on IDEAS
    2. Lina Maria Ellegård & Jens Dietrichson & Anders Anell, 2018. "Can pay‐for‐performance to primary care providers stimulate appropriate use of antibiotics?," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 39-54, January.
    3. Andrew Dustan & Stanislao Maldonado & Juan Manuel Hernandez-Agramonte, 2018. "Motivating bureaucrats with non-monetary incentives when state capacity is weak: Evidence from large-scale field experiments in Peru," Working Papers 136, Peruvian Economic Association.
    4. Andrew Dustan & Juan Manuel Hernandez-Agramonte & Stanislao Maldonado, 2018. "Motivating bureaucrats with non-monetary incentives when state capacity is weak: Evidence from large-scale," Natural Field Experiments 00664, The Field Experiments Website.
    5. Mauricio Vargas & Santiago Garriga, 2015. "Explaining Inequality and Poverty Reduction in Bolivia," IMF Working Papers 15/265, International Monetary Fund.
    6. Nava Ashraf & Oriana Bandiera & Scott Lee, 2014. "Losing Prosociality in the Quest for Talent? Sorting, Selection, and Productivity in the Delivery of Public Services," STICERD - Economic Organisation and Public Policy Discussion Papers Series 065, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
    7. Martinez, Sebastian & Bernal, Pedro, 2019. "In-Kind Incentives and Health Worker Performance: Experimental Evidence from El Salvador," IDB Publications (Working Papers) 45, Inter-American Development Bank.

    More about this item

    Keywords

    Disease Control&Prevention; Health Systems Development&Reform; Health Monitoring&Evaluation; Population Policies; Labor Policies;

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I13 - Health, Education, and Welfare - - Health - - - Health Insurance, Public and Private
    • I15 - Health, Education, and Welfare - - Health - - - Health and Economic Development

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