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Financial incentives for physicians may not be working as expected

Photo: Yuya Tamai via Flickr

Photo: Yuya Tamai via Flickr

One premise behind the formation of accountable care organizations is that physicians and other health care providers would have financial incentives to deliver high quality care at lower costs. But research is indicating that the financial incentive may not be sufficient to foster improvements in care.

A study published in the July/August 2015 issue of the Annals of Family Medicine, noted that physicians both inside and outside of accountable care organizations (ACOs) have similar payment arrangements. They are paid a mix of salary, bonuses for productivity and a bonus equivalent to about 5 percent of total salary for delivering quality care and other factors, the researchers said. Continue reading