Provider payment incentives - Agency theory & models of physician behaviour
3 important questions on Provider payment incentives - Agency theory & models of physician behaviour
What is the evidence for the Target Income hypothesis?
What are the conclusions about the physicians utility theory? (3x)
- Physicians do not always act as perfect agents for their patients, but sometimes pursue their own interests.
- The good news: altruistic/ethical considerations do play a role
- Yet it’s clear that physicians’ interests will often not be fully aligned with those of payers à agency problems.
How can we deal with agency problems?
- Reducing information asymmetry
- aligning interests
- payment incentives can help
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