What is the main issue with pay-for-performance programs from the behavioral economics point of view? Pay-for-performance programs would help drive the behavior of providers and health care systems to improve the quality of care delivered, reduce unnecessary use of expensive health care services, and improve patient health outcomes They penalize health care providers for poor outcomes, medical errors or increased costs. They imply that providers are perfectly rational: providers just needed the right monetary incentive to improve performance
What is the main issue with pay-for-performance programs from the behavioral economics point of view?
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Pay-for-performance programs would help drive the behavior of providers and health care systems to improve the quality of care delivered, reduce unnecessary use of expensive health care services, and improve patient health outcomes |
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They penalize health care providers for poor outcomes, medical errors or increased costs.
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They imply that providers are perfectly rational: providers just needed the right monetary incentive to improve performance |
There are a few important points.
In healthcare, pay-for-performance programmes are frequently utilised to motivate providers to improve their performance. However, the efficacy of these programmes has been a source of contention in the research.
Pay-for-performance programme incentives have had no influence on healthcare outcomes.
According to some authors, the design of pay-for-performance programmes does not take into account what is known about the psychology of how individuals respond to incentives, which may lead to their failure.
Behavioural economics: It studies how people make decisions and react to incentives. It implies that humans are not always rational and that cognitive biases and heuristics influence their behaviour.
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