Physician-Targeted Financial Incentives and Primary Care Physicians’ Self-Reported Ability to Provide High-Quality Primary Care

Abstract

Objective: High-quality primary care is envisaged as the centerpiece of the emerging health care delivery system under the Affordable Care Act. Reengineering the US health care system into a primary care–driven model will require widespread, rapid changes in the management and organization of primary care physicians (PCPs). Financial incentives to influence physician behavior have been attempted with various approaches, without empirical evidence of their effectiveness in improving care quality. This study examines the above research question adjusting for the patient-centeredness of the practice climate, a major contextual factor affecting PCPs’ ability to provide high-quality care. Methods: Secondary data on a sample of salaried PCPs (n = 1733) from the nation-wide Community Tracking Study Physician Survey 2004-2005 were subject to generalized multinomial logit modeling to examine associations between financial incentives and PCPs’ self-reported ability to provide quality care. Results: After adjusting for patient-centered medical home (PCMH)–consistent practice environment, financial incentive aligned with care quality/care content is positively associated with PCPs’ ability to provide high-quality care. An encouraging finding was that financial incentives aligned with clinic productivity/profitability do not to impede high-quality care in a PCMH practice environment. Conclusion: Financial incentives targeted to care quality or content indicators may facilitate rapid transformation of the health system to a primary care–driven system. The study provides empirical evidence of the utility of practically deployable financial incentives to facilitate high-quality primary care.