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Innovations in Health Care Delivery
November 1, 2016

Physician Peer Comparisons as a Nonfinancial Strategy to Improve the Value of Care

Author Affiliations
  • 1Perelman School of Medicine, University of Pennsylvania, Philadelphia
  • 2Corporal Michael J. Cresencz VA Medical Center, Philadelphia, Pennsylvania
  • 3Leonard Davis Institute of Health Economics, The Wharton School, University of Pennsylvania, Philadelphia
JAMA. 2016;316(17):1759-1760. doi:10.1001/jama.2016.13739

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