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FOTO Rehab Outcomes Blog

Incentive Payments

Health care has evolved to value quality over quantity. So, should providers be incentivized for the quality of their care? Daniel Pink would probably say no. 

Although the research I'm sharing today is focused on physicians in a hospital system, I believe there may be some pearls of wisdom within the research to assist others in designing incentive programs.

Here's a quick view of the abstract. 


Results, Knowledge, and Attitudes Regarding an Incentive Compensation Plan in a Hospital-Based, Academic, Employed Physician Multispecialty Group.




Hospitals and healthcare systems are introducing incentive metrics into compensation plans that align with value-based payment methodologies. These incentive measures should be considered a practical application of the transition from volume to value and will likely replace traditional productivity-based compensation in the future. During the transition, there will be provider resistance and implementation challenges. This article examines a large multispecialty group's experience with a newly implemented incentive compensation plan including the structure of the plan, formulas for calculation of the payments, the mix of quality and productivity metrics, and metric threshold achievement. Three rounds of surveys with comments were collected to measure knowledge and attitudes regarding the plan. Lessons learned and specific recommendations for success are described. The participant's knowledge and attitudes regarding the plan are important considerations and affect morale and engagement. Significant provider dissatisfaction with the plan was found. Careful metric selection, design, and management are critical activities that will facilitate provider acceptance and support. Improvements in data collection and reporting will be needed to produce reliable metrics that can supplant traditional volume-based productivity measures.

2017 Mar/Apr;62(2):120-133. doi: 10.1097/JHM-D-17-00009.