January 31, 2022
Transition to Value
  • A RAND study found that health systems largely still pay primary care physicians and specialists based on volume-based incentives. Furthermore, 70 percent of practices use “increasing the volume of services delivered” as a means for physicians to increase their compensation. Performance-based financial incentives for value-oriented goals represented only a small fraction of total compensation for primary care physicians and specialists. According to the researchers, the “disconnect between the incentives and financial risk that physician organizations face from payers and those passed on in physician compensation likely contributes to the dominance of volume-based compensation and modesty of quality and cost performance incentives.” (Study here)