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Allocation of health care under pay for performance

Winners and losers

Bibliographic Data

ID4593518
AuthorsAnne Sophie Oxholm (0000-0001-8865-185X, University of Southern Denmark, corresponding author), Sibilla Di Guida, Giovanna Devetag (0000-0002-3548-4733, University of Southern Denmark), Dorte Gyrd-Hansen (0000-0003-1137-2304, University of Southern Denmark)
Year2021
Volume278
Pages113939
Publication date2021-06-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueSocial Science & Medicine (JOURNAL)
Journal identifiersISSN: 0277-9536 • E-ISSN: 1873-5347
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.socscimed.2021.113939
PMID33962321
OpenAlexW3152964289
LanguageEN
Citations received4
References cited33

Many physicians receive a payment for their performance (P4P). This performance is often linked to a health target that triggers a bonus when met. For some patients the target is easily met, while others require a significant amount of care to reach the target (if ever). This study contributes to the literature by providing evidence of how P4P affects allocation of care across patients with low and high responsiveness to treatment compared to a fixed payment, such as capitation and salary, under different degrees of resource constraint. Our evidence is based on a controlled laboratory experiment involving 143 medical students in Denmark in 2019. We find that patients who have the potential to reach the health target, gain care under P4P, whereas patients with no potential to reach it, may receive less care. Redistribution of care between patients under P4P arises when physicians are resource constrained. As many physicians are currently operating under tight resource constraints, policymakers should be careful to avoid unintended inequalities in patients' access to health care when introducing P4P. Risk-adjusting the performance target may potentially solve this issue

Actuarial science · Budget constraint · Business · Capitation · Constraint (computer-aided design · Economic growth · Economics · Family medicine · Health care · Inequality · Microeconomics · Pay for performance · Payment · Political science · Public economics · Public health · Redistribution (election · Resource allocation · Salary · Unintended consequences · Global Health Care Issues · Healthcare Policy and Management · Healthcare Systems and Reforms · Medicine · Nursing · Finance

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Unique citing works4
Citations per year1
Citation span2022 - 2026 (5)
Citation velocitycurrent
Highly citedNo
Citation typesNeutral: 4

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