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The Bonus Scheme, Motivation Crowding-out and Quality of the Doctor-Patient Encounters in Chinese Public Hospitals

Jiwei Qian and Alex Jingwei He (jwhe@eduhk.hk)
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Alex Jingwei He: The Education University of Hong Kong, Hong Kong

Public Organization Review, 2018, vol. 18, issue 2, No 1, 143-158

Abstract: Abstract Methods of paying health providers have been extensively studied in health economics. Bonus as a powerful incentive has been widely used to boost staff morale and improve productivity in hospitals. This may, however, also create unintended consequences. This study analyzes primary data collected from a physician survey in China and demonstrates that the extensive use of quantity-based bonuses has not only led to the provision of unnecessary care but also crowded out physician’s intrinsic motivations, resulting in a decline in the quality of services. More appropriate physician remuneration mechanisms must be introduced in China’s ongoing health reform.

Keywords: Provider payment; Doctor-patient relationship; Motivation; Bonus; Public hospital; China (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11115-016-0366-y

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