How do Non-Monetary Performance Incentives for Physicians Affect the Quality of Medical Care? - A Laboratory Experiment

29 Pages Posted: 18 Jun 2013

See all articles by Nadja Kairies-Schwarz

Nadja Kairies-Schwarz

CINCH / University of Duisburg Essen

Miriam Krieger

University of Duisburg-Essen

Date Written: April 2, 2013

Abstract

In recent years, several countries have introduced non-monetary performance incentives for health care providers to improve the quality of medical care. Evidence on the effect of non-monetary feedback incentives, predominantly in the form of public quality reporting, on the quality of medical care is, however, ambiguous. This is often because empirical research to date has not succeeded in distinguishing between the effects of monetary and non-monetary incentives, which are usually implemented simultaneously. We use a controlled laboratory experiment to isolate the impact of nonmonetary performance incentives: subjects take on the role of physicians and make treatment decisions for patients, receiving feedback on the quality of their treatment. The subjects’ decisions result in payments to real patients. By giving either private or public feedback we are able to disentangle the motivational effects of self-esteem and social reputation. Our results reveal that public feedback incentives have a significant and positive effect on the quality of care that is provided. Private feedback, on the other hand, has no impact on treatment quality. These results hold for medical students and for other students.

Keywords: laboratory experiment, quality reporting, feedback, treatment quality, performance incentives

JEL Classification: I11, C91, L15, I18

Suggested Citation

Kairies-Schwarz, Nadja and Krieger, Miriam, How do Non-Monetary Performance Incentives for Physicians Affect the Quality of Medical Care? - A Laboratory Experiment (April 2, 2013). Available at SSRN: https://ssrn.com/abstract=2278866 or http://dx.doi.org/10.2139/ssrn.2278866

Nadja Kairies-Schwarz (Contact Author)

CINCH / University of Duisburg Essen ( email )

Berliner Platz 6-8
Essen, 47048
Germany

Miriam Krieger

University of Duisburg-Essen ( email )

Lotharstrasse 1
Duisburg, 47048
Germany

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