Financial Incentives to Physicians

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