Quality-Enhancing Incentive Initiatives for Hospital Care: Policy Implications and Management Requirements

16 Pages Posted: 16 Jan 2016

See all articles by Pierluigi Catalfo

Pierluigi Catalfo

University of Catania - Faculty of Economics

Marina Cavalieri

University of Catania

Livio Ferrante

University of Catania

Date Written: 2015

Abstract

During the last decades, in many countries retrospective payment systems for hospital care have been replaced by prospective payment methods, mainly DRG-based ones. The latter, though encouraging a more efficient use of hospital resources, present several undesired effects, some of which are likely to jeopardize the quality of care. The aim of the paper is to examine the main issues in designing and implementing an effective scheme of financial incentives for enhancing quality of hospital care. The main international experiences regarding the adoption of hospital performance-based incentives as well as the existing empirical evidence on their capacity to effectively boost quality of care are also critically analysed. Finally, some managerial remarks are considered in order to provide indications for the concrete implementation process and to contribute to the definition of a quality-enhancing incentive scheme well suited to the peculiarities of each organization system.

Keywords: Payment systems, quality of hospital care, incentives, performance, P4P, PQ4

JEL Classification: I10, I12

Suggested Citation

Catalfo, Pierluigi and Cavalieri, Marina and Ferrante, Livio, Quality-Enhancing Incentive Initiatives for Hospital Care: Policy Implications and Management Requirements (2015). Available at SSRN: https://ssrn.com/abstract=2715678 or http://dx.doi.org/10.2139/ssrn.2715678

Pierluigi Catalfo

University of Catania - Faculty of Economics ( email )

Catania, 55
Italy

Marina Cavalieri (Contact Author)

University of Catania ( email )

Monastero dei Benedettini
Piazza dante 32
95124 Catania, Sicily 95124
Italy

Livio Ferrante

University of Catania ( email )

Monastero dei Benedettini
Piazza dante 32
95124 Catania, Sicily 95124
Italy

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