Unbiased Analysis of Today's Healthcare Issues

Archive for the 'Physician Compensation' Category

P4P in Ontario

Ontario implemented a physician pay-for-performance (P4P) scheme in 2002.  This P4P framework was a jointly agreed upon by the  Ontario government and the Ontario Medical Association.  The Ontario P4P program is described in Hurley, DeCicca and Buckley (2013) in more detail below: [Ontario’s P4P program] targets performance bonuses on effective preventive services whose rates of provision were […]

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Do physicians care about patients’ cost?

A paper by Li and Laxminarayan (Health Econ forthcoming) examines an interesting question: Are physicians sensitive to drug prices faced by their patients? In an ideal world, physicians act as perfect agents for their patients, taking into consideration their medical needs and financial constraints. In reality, the choice of drug and whether a generic or brand-name […]

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Effect of Physician Reimbursement Rates on Medicaid Take-up

Only about 50% to 60% of individuals eligible for Medicaid actually take-up the coverage.  Why is this case?  Many people claim that individuals only take up Medicaid insurance when they get sick.  Others claim that state outreach efforts have been subpar.  Youjin Hahn, however, offers another explanation rates: Medicaid insurance is just not that valuable. The […]

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Why become a doctor?

On The Health Care Blog (THCB), Dr. Vineet Arora argues that being a doctor is not as attractive as it once was. She writes: After all, why go into this much debt and spend so much time in training if your prospects are not much better? More recently, the New York Times article points out […]

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P4P and Diabetes Care

In April 2006, Ontario instituted the Diabetes Management Incentive (DMI) that increased payments to physicians that provided high-quality diabetes care. Did the incentive improve payments quality? According to a paper by Kantarevic and Kralj (2012), it turns out that the answer is yes, but the magnitude of the change depends on the type of physician. […]

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The Doc Fix and the Fiscal Cliff

President Barack Obama has signed the American Taxpayer Relief Act of 2012, which continues current Medicare payment rates for the nation’s physicians through Dec. 31, 2013. This bill nullifies the Sustainable Growth Rate which, if implemented, would have reduced Medicare payments to physicians by 26.5 percent.  The doc fix will cost $10.6 billion in fiscal […]

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Physician Payments in the 1990s

One of my favorite health economists and bloggers is Austin Frakt of the Incidental Economist.  In a recent paper, he examines whether new Health Reform provisions have learned from the mistakes in the 1990s from shifting provider reimbursement to a capitation based-system.  To find the answer, you’ll need to read his commentary (with Rick Mayes) […]

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How does Geisinger Pay its Physicians?

Geisinger Health System is a physician-led, not-for-profit, integrated delivery system serving an area with approximately 2.6 million people in northeastern and central Pennsylvania with innovative products and services designed to drive higher performance. Geisinger is known for providing high quality care at low cost. How do they do it? Is it how they incentivize physicians? […]

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PQRS in 2013

Some background: Created in March 2007, the PQRI established a financial incentive for eligible healthcare professionals to participate in a voluntary quality reporting program. By reporting on a minimum of 3 measures on a specified group of patients, a physician can earn a bonus payment of 0.5% on all of their Medicare billing for 2012. […]

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Are young physicians better than old ones?

I can’t answer that. But I can tell you that young physicians are more likely to favor more costly medical intervetions. At least this is the conclusion of a recent study by Ateev Mehrotra and colleagues. They find: We found that physicians with fewer than ten years of experience had 13.2 percent higher overall costs […]

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