TY - JOUR
T1 - Measuring the effect of pay-for-performance financial incentives on hospital efficiency in the military health system
AU - Bastian, Nathaniel D.
AU - Kang, Hyojung
AU - Griffin, Paul M.
AU - Fulton, Lawrence V.
N1 - Funding Information:
This material is based upon work supported by the National Science Foundation under grant no. DGE1255832. Any opinions, findings, and conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of the National Science Foundation, Pennsylvania State University, University of Virginia, Georgia Institute of Technology, Texas Tech University, or the Department of Defense.
Publisher Copyright:
© 2016, © “IIE”.
PY - 2016/1/2
Y1 - 2016/1/2
N2 - The U.S. military health system implemented a pay-for-performance financial incentive program in 2007 in an effort to stimulate patient quality, access, and satisfaction improvements. This study measures the effect of the monetary incentive model on hospital efficiency and outcomes. Using a retrospective, quasi-experimental design, the empirical analysis incorporates data envelopment analysis with time windows and difference-in-differences estimation. Hospitals are evaluated in the U.S. Army, Air Force, and Navy during the period of 2001–2012. The results indicate a statistically significant reduction in technical efficiency for the hospitals that received pay-for-performance financial incentives. The healthcare policy implications of this study are applicable in light of the national healthcare debate and may assist healthcare policy makers in determining the efficacy and associated trade-offs of pay-for-performance financing models.
AB - The U.S. military health system implemented a pay-for-performance financial incentive program in 2007 in an effort to stimulate patient quality, access, and satisfaction improvements. This study measures the effect of the monetary incentive model on hospital efficiency and outcomes. Using a retrospective, quasi-experimental design, the empirical analysis incorporates data envelopment analysis with time windows and difference-in-differences estimation. Hospitals are evaluated in the U.S. Army, Air Force, and Navy during the period of 2001–2012. The results indicate a statistically significant reduction in technical efficiency for the hospitals that received pay-for-performance financial incentives. The healthcare policy implications of this study are applicable in light of the national healthcare debate and may assist healthcare policy makers in determining the efficacy and associated trade-offs of pay-for-performance financing models.
KW - data envelopment analysis
KW - financial incentives
KW - healthcare policy
KW - panel data regression
KW - pay-for-performance
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U2 - 10.1080/19488300.2015.1132488
DO - 10.1080/19488300.2015.1132488
M3 - Article
AN - SCOPUS:84981277002
SN - 2472-5579
VL - 6
SP - 33
EP - 41
JO - IISE Transactions on Healthcare Systems Engineering
JF - IISE Transactions on Healthcare Systems Engineering
IS - 1
ER -