 Stirring the pot: Switching from blended fee‐for‐service to blended capitation models of physician remunerationNibene H. Somé, Rose Anne Devlin, Nirav Mehta, Gregory S. Zaric and Sisira Sarma Health Economics, 2020, vol. 29, issue 11, 1435-1455 Abstract: In Canada's most populous province, Ontario, family physicians may choose between the blended fee‐for‐service (Family Health Group [FHG]) and blended capitation (Family Health Organization [FHO] payment models). Both models incentivize physicians to provide after‐hours (AH) and comprehensive care, but FHO physicians receive a capitation payment per enrolled patient adjusted for age and sex, plus a reduced fee‐for‐service while FHG physicians are paid by fee‐for‐service. We develop a theoretical model of physician labor supply with multitasking to predict their behavior under FHG and FHO, and estimable equations are derived to test the predictions empirically. Using health administrative data from 2006 to 2014 and a two‐stage estimation strategy, we study the impact of switching from FHG to FHO on the production of a capitated basket of services, after‐hours services and nonincentivized services. Our results reveal that switching from the FHG to FHO reduces the production of capitated services to enrolled patients and services to nonenrolled patients by 15% and 5% per annum and increases the production of after‐hours and nonincentivized services by 8% and 15% per annum. Date: 2020 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:hlthec:v:29:y:2020:i:11:p:1435-1455 Access Statistics for this article Health Economics is currently edited by Alan Maynard, John Hutton and Andrew Jones More articles in Health Economics from John Wiley & Sons, Ltd. |
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