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Effects of Compensation Methods and Physician Group Structure on Physicians' Perceived Incentives to Alter Services to Patients
April 2006
Health Services Research, Online Early
James D. Reschovsky, Jack Hadley, Bruce Landon
Seven percent of physicians report financial incentives are to reduce services to patients, whereas 23 percent report incentives to increase services. Reported incentives to reduce services were associated with reports of lower ability to provide quality care. Group revenue in the form of capitation was associated with incentives to reduce services whereas practice ownership and variable compensation and bonuses for employee physicians were mostly associated with incentives to increase services to patients. Full ownership of groups, productivity incentives, and perceived competitive markets for patients were associated with incentives to both increase and reduce services.
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