The tougher the better: an economic analysis of increased payment thresholds on the performance of general practices

Health Econ. 2015 Mar;24(3):353-71. doi: 10.1002/hec.3022. Epub 2014 Jan 5.

Abstract

We investigate whether and how a change in performance-related payment motivated General Practitioners (GPs) in Scotland. We evaluate the effect of increases in the performance thresholds required for maximum payment under the Quality and Outcomes Framework in April 2006. A difference-in-differences estimator with fixed effects was employed to examine the number of patients treated under clinical indicators whose payment schedules were revised and to compare these with the figures for those indicators whose schedules remained unchanged. The results suggest that the increase in the maximum performance thresholds increased GPs' performance by 1.77% on average. Low-performing GPs improved significantly more (13.22%) than their high-performing counterparts (0.24%). Changes to maximum performance thresholds are differentially effective in incentivising GPs and could be used further to raise GPs' performance across all indicators.

Keywords: financial incentives; general practitioners; quality and outcomes framework.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Benchmarking
  • General Practitioners / economics*
  • Humans
  • Models, Econometric
  • Motivation*
  • Physician Incentive Plans / statistics & numerical data*
  • Quality of Health Care
  • Scotland