Physician Financial Incentives to Reduce Unplanned Hospital Readmissions: an Interrupted Time Series Analysis

John A Staples1,2,3, Guiping Liu4, Jeffrey R Brubacher2,5

  • 1Department of Medicine, University of British Columbia, Vancouver, Canada.

Insights

Financial incentives for physician-written discharge plans did not significantly reduce hospital readmissions in British Columbia. Incomplete physician uptake may have limited the policy's effectiveness in improving patient care transitions.

Area of Science:

  • Health Services Research
  • Health Economics
  • Patient Care Management

Background:

  • British Columbia's Ministry of Health implemented a $75 physician incentive in 2012 for written post-discharge care plans for complex patients.
  • This policy aimed to improve care continuity and reduce hospital readmissions.

Purpose of the Study:

  • To evaluate the impact of physician financial incentives on reducing 30-day unplanned hospital readmissions.
  • To assess the association between the incentive policy and changes in readmission risk over time.

Main Methods:

  • An interrupted time series analysis was conducted on population-based hospitalization data from British Columbia (2007–2017).
  • The study analyzed monthly readmission rates before and after the policy's introduction.
  • Incomplete incentive payment uptake was also examined.

Main Results:

  • The policy introduction was not associated with a significant change in monthly hospital readmission risk.
  • While there was a reduction in potentially inappropriate medication prescriptions for older patients, no improvements were seen in beta-blocker prescriptions or 30-day mortality.
  • Physician uptake of the incentive payment was low, increasing from 6.4% to 23.5% over the study period.

Conclusions:

  • The physician incentive payment policy did not lead to significant reductions in hospital readmission rates.
  • Incomplete physician participation may have hindered the policy's effectiveness.
  • Findings suggest policymakers should consider physician engagement when designing similar interventions.
Abstract

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