The trend toward accountable care and risk-based payment is focusing health insurers and health care organizations on increasing the value of care. Typically, financial incentives in value-based models, such as penalties for hospital readmissions, apply at the organization level. Given the limited number of patients per physician with any particular condition, value-based financial incentives often do not reflect the care of individual physicians. Furthermore, there is significant concern about the effectiveness of extrinsic financial incentives because they may crowd out the intrinsic motivation of physicians. Consequently, even though health care organizations are likely to align financial incentives through behaviorally designed changes in physician compensation, they are also likely to implement nonfinancial ways to transform physician practice.1
Navathe AS, Emanuel EJ. Physician Peer Comparisons as a Nonfinancial Strategy to Improve the Value of Care. JAMA. 2016;316(17):1759–1760. doi:10.1001/jama.2016.13739
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