Healthcare Economist June 16, 2025
This is one of the fundamental questions in health policy in recent years. Quality can be measured in two parts. First, does quality improved for targeted patients? Second, does quality improve for non-targeted patients.
The first question is relatively clear. One would think that quality would improve for the patients targeted by a pay-for-performance (P4P) program but this may not always be the case. For instance, the financial incentives to improve quality may not be sufficient. Or the provider who is incentivized by the P4P program may not have a significant enough impact on outcomes (e.g., patient non-adherence, social determinants of health, or the quality of other health care providers may also impact the outcome of interest).
The second question...
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