Financial Incentives to Physicians

Abstract

Forced to cut expenses due to ceilings on reimbursement and\nincreasing competition, many health facilities are beginning to offer\nfinancial incentives, such as profit-sharing, to physicians to persuade them\nto practice more efficient medicine. More efficient practice is defined as\nthat which utilizes shorter hospital stays and fewer tests, and substitutes\nambulatory care for hospitalization. Physician investment in facilities also\nis regarded as encouraging cost-effective care. Although questions are being\nraised about the ethics of influencing physicians through the use of financial\nincentives, the authors point out that the American health system long has\nbeen entrepreneurial in nature. They argue that the real issue is quality of\ncare, and that the focus should be on monitoring clinical results and\nappropriate medical and social outcomes. (KIE abstract)