Abstract
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.
Original language | English (US) |
---|---|
Pages (from-to) | 33-41 |
Number of pages | 9 |
Journal | IIE Transactions on Healthcare Systems Engineering |
Volume | 6 |
Issue number | 1 |
DOIs | |
State | Published - Jan 2 2016 |
Externally published | Yes |
Keywords
- data envelopment analysis
- financial incentives
- healthcare policy
- panel data regression
- pay-for-performance
ASJC Scopus subject areas
- Safety, Risk, Reliability and Quality
- Safety Research
- Public Health, Environmental and Occupational Health