Incentivizing the Delivery of High-Value Health Care

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Many health systems are seeking to strengthen the link between the cost and quality of care and how providers get paid. Writing in the journal Healthcare, a Commonwealth Fund–supported research team led by Amol S. Navathe, M.D., of the University of Pennsylvania’s Perelman School of Medicine illustrates how some integrated care delivery systems are experimenting with novel provider incentives — both financial and nonfinancial — that can promote high-value care.

Into Practice: How Advocate Health System Uses Behavioral Economics to Motivate Physicians in Its Incentive Program. Using a combination of financial benefits, social pressure, and motivators like professional pride, Illinois-based Advocate engaged physicians, including many in private practice, to focus on care coordination and cost-effectiveness.

Baptist Health System: Succeeding in Bundled Payments Through Behavioral Health Principles. This five-hospital system in San Antonio gained physician support for a bundled payment program that generated $6.1 million in savings on joint replacement procedures.

Aligning Incentives for Value: The Internal Performance Framework at Partners HealthCare. Under the accountable care strategy implemented by Massachusetts’ Partners HealthCare, physician and hospital incentives for cost control and quality improvement are designed to reward all levels of performance between baseline and goal. Read the briefs