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Evolution of a quality-based compensation model: the third generation

N Schlackman1

  • 1U.S. Healthcare, Blue Bell, PA.

American Journal of Medical Quality : the Official Journal of the American College of Medical Quality
|January 1, 1993
PubMed
Summary
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U.S. Healthcare (USHC) developed a third-generation incentive model for primary care physicians, improving healthcare quality and cost management. This system fairly compensates physicians for effectively managing patient care and costs.

Area of Science:

  • Healthcare Management
  • Health Economics
  • Quality Improvement

Background:

  • U.S. Healthcare (USHC) utilizes a capitation payment model for primary care physicians.
  • Physician compensation is tied to quality assessment ratings and cost-of-care management.
  • Previous incentive models preceded the current system.

Purpose of the Study:

  • To present the evolution of USHC's incentive model.
  • To demonstrate the fairness and effectiveness of the third-generation Quality Care Compensation Model.
  • To highlight the model's ability to measure and value population healthcare delivery.

Main Methods:

  • Implementation of a third-generation incentive model in January 1992.
  • Alteration of the Quality Care Compensation System.

Related Experiment Videos

  • Systematic development and monitoring of incentive mechanisms.

    • Main Results:

    • The third-generation model rewards physicians for managing both quality and cost of care.
    • The model provides a fair and effective means of valuing healthcare delivery.
    • USHC's experience demonstrates successful quality improvement outcomes.

    Conclusions:

    • The third-generation Quality Care Compensation Model is a fair and effective healthcare incentive system.
    • Physician efforts in managing quality and cost are appropriately rewarded.
    • Systematic monitoring of incentive mechanisms can lead to improved healthcare quality.