The effects of an incentive program on quality of care in diabetes management

Anthony Scott, Stefanie Schurer, Paul H. Jensen () and Peter Sivey
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Anthony Scott: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia, Postal: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia
Stefanie Schurer: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia, Postal: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia
Peter Sivey: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia, Postal: University of Melbourne, Melbourne Institute of Applied Economic and Social Research, Melbourne, Vic., Australia

Health Economics, 2009, vol. 18, issue 9, pages 1091-1108

Abstract: An incentive program for general practitioners to encourage systematic and igh-quality care in chronic disease management was introduced in Australia in 1999. There is little empirical evidence and ambiguous theoretical guidance on which effects to expect. This paper evaluates the impact of the incentive program on quality of care in diabetes, as measured by the probability of ordering an HbA1c test. The empirical analysis is conducted with a unique data set and a bivariate probit model to control for the self-selection process of practices into the program. The study finds that the incentive program increased the probability of an HbA1c test being ordered by 20 percentage points and that participation in the program is facilitated by the support of Divisions of General Practice. Copyright © 2009 John Wiley & Sons, Ltd.

Date: 2009
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