Will Financial Incentives Stimulate Quality Improvement? Reactions From Frontline Physicians

• Published in: American journal of medical quality Vol. 21; no. 6; pp. 367 - 374
• Main Authors: Teleki, Stephanie S., Damberg, Cheryl L., Pham, Chau, Berry, Sandra H.
• Format: Journal Article
• Language: English
• Published: Thousand Oaks, CA Sage Publications 01-11-2006; Medknow Publications and Media Pvt. Ltd
• Subjects: Adult; Aged; Compensation and benefits; Cross-Sectional Studies; Female; Humans; Insurance Coverage - organization & administration; Insurance, Health; Male; Medical care; Middle Aged; Motivation; Patient Compliance; Perception; Physician Incentive Plans; Physicians; Physicians - psychology; Qualitative Research; Quality management; Quality of Health Care - economics; Quality of Health Care - organization & administration; United States; P4P; financial incentives for physicians; pay for performance
• ISSN: 1062-8606; 1555-824X
• DOI: 10.1177/1062860606293602

Pay-for-performance is being applied at the physician level to stimulate improvements in quality of care and cost efficiency; however, little is known about how physicians will respond. We interviewed physicians exposed to a financial incentive program in California to identify possible barriers to the successful application of financial incentives by exploring physicians’ opinions of and experiences with pay-for-performance programs. Reasons physicians cited for quality deficiencies included insurance coverage limitations and lack of patient compliance, time, and proper physician oversight. Physicians believe that they play a significant role and have a moderate to high degree of control over quality of care and that it is important to self-monitor. Physicians expressed the need for accurate and timely data, peer comparisons, and more patient time, staff support, and consultations with colleagues to successfully monitor and deliver quality care. Many support increased pay for delivering high-quality care but question measurement accuracy, bonus payment financing, and health plan involvement.