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Published on: December 23, 2025
Using performance measures to motivate 'report-averse' and 'report-loving' agents
Jacob Glazer1, Thomas G McGuire, Joseph P Newhouse
1Faculty of Management, Tel Aviv University, Israel.
Journal of Health Economics
|November 13, 2007
Summary
Health plans must consider how quality reports impact providers. A new model shows provider responses to reporting, influencing health plan costs and quality improvement efforts.
Area of Science:
- Health economics
- Healthcare management
- Provider behavior
Background:
- Quality reporting is crucial for health plans.
- Provider responses to quality reports significantly impact healthcare costs and quality.
- Understanding these responses is key to effective healthcare management.
Purpose of the Study:
- To propose a simple model of how quality reporting affects healthcare providers.
- To analyze the impact of reporting cut points on provider welfare and market demand.
- To guide health plans in choosing cut points that maximize provider quality improvement efforts.
Main Methods:
- Developed a theoretical model of provider response to quality reporting.
- Incorporated provider preferences for income and market demand.
- Analyzed the concept of 'report-averse' and 'report-loving' provider types.
Main Results:
- Provider responses to quality reporting are influenced by income preferences and market demand.
- Providers can be categorized as 'report-averse' or 'report-loving' based on their response.
- The choice of reporting cut points affects health plan costs and provider quality efforts.
Conclusions:
- Health plans must model provider responses to quality reporting for effective contract design.
- Understanding provider aversion or preference for reporting is essential for optimizing quality improvement.
- Strategic cut point selection can incentivize providers to enhance service quality.
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