Impact of Provider Incentives on Quality and Value of Health Care

Posted: 19 Apr 2017

See all articles by Tim Doran

Tim Doran

University of York - Department of Health Sciences

Kristin A. Maurer

University of Michigan at Ann Arbor

Andrew Ryan

University of Michigan at Ann Arbor

Date Written: March 2017

Abstract

The use of financial incentives to improve quality in health care has become widespread. Yet evidence on the effectiveness of incentives suggests that they have generally had limited impact on the value of care and have not led to better patient outcomes. Lessons from social psychology and behavioral economics indicate that incentive programs in health care have not been effectively designed to achieve their intended impact. In the United States, Medicare's Hospital Readmission Reduction Program and Hospital Value-Based Purchasing Program, created under the Affordable Care Act (ACA), provide evidence on how variations in the design of incentive programs correspond with differences in effect. As financial incentives continue to be used as a tool to increase the value and quality of health care, improving the design of programs will be crucial to ensure their success.

Suggested Citation

Doran, Tim and Maurer, Kristin A. and Ryan, Andrew, Impact of Provider Incentives on Quality and Value of Health Care (March 2017). Annual Review of Public Health, Vol. 38, pp. 449-465, 2017, Available at SSRN: https://ssrn.com/abstract=2953267 or http://dx.doi.org/10.1146/annurev-publhealth-032315-021457

Tim Doran (Contact Author)

University of York - Department of Health Sciences ( email )

Kristin A. Maurer

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

Andrew Ryan

University of Michigan at Ann Arbor ( email )

500 S. State Street
Ann Arbor, MI 48109
United States

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