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Using Visual and Narrative Methods to Achieve Fair Process in Clinical Care
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Published on: February 16, 2011

Quality-based payment for medical groups and individual physicians.

James C Robinson1, Stephen M Shortell, Diane R Rittenhouse

  • 1Berkeley Center for Health Technology, School of Public Health, 247 University Hall, University of California, Berkeley, CA 94720-7360, USA. james.robinson@berkeley.edu

Inquiry : a Journal of Medical Care Organization, Provision and Financing
|August 22, 2009
PubMed
Summary

Most large medical groups receive pay-for-performance incentives. These groups are more likely to reward physicians based on quality and patient satisfaction, especially when facing external quality-driven incentives.

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Area of Science:

  • Health Services Research
  • Medical Economics
  • Healthcare Management

Background:

  • External pay-for-performance (P4P) incentives from health plans are increasingly common.
  • Understanding how these incentives influence medical groups' internal payment structures is crucial for effective healthcare delivery.

Purpose of the Study:

  • To assess the prevalence of external P4P incentives in large medical groups.
  • To determine the association between external P4P incentives and internal physician payment methods based on quality and patient satisfaction.

Main Methods:

  • Analysis of survey data from large medical groups regarding external incentives and physician payment structures.
  • Statistical analysis, including odds ratios, to evaluate the relationship between incentive types and payment criteria.

Main Results:

  • Over half (52%) of large medical groups received P4P bonuses based on quality and patient satisfaction (2006-2007).
  • Groups with external P4P incentives were significantly more likely to pay primary care physicians (OR 4.5) and specialists (OR 2.5) based on quality and satisfaction.
  • Capitation payment models were associated with salary-based physician pay and less emphasis on productivity compared to fee-for-service models.

Conclusions:

  • External pay-for-performance incentives are associated with internal physician payment structures that incorporate quality and patient satisfaction metrics.
  • Healthcare payment models significantly influence how medical groups compensate their physicians, impacting alignment with quality and cost-control goals.