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Groups increasingly base physician compensation on quality

Physician Practice Advisor, January 10, 2007

Roughly 20% of group practices used quality measures to help determine physician compensation in 2005, according to a study by the Center for Studying Health System Change (HSC). The percentage of groups using quality measures has increased from 17.6% in 2001.

Despite the increases in quality-related compensation, financial incentives tied to individual productivity measures continue to dominate physician compensation methods, affecting 70% of physicians in group practices since 1997.

Physicians themselves tend to view production as more important than quality when it comes to compensation, the study found. Nearly 75% of physicians who reported facing productivity-based financial incentives viewed these incentives as a very important factor determining their compensation. However, only 44% of physicians subject to quality-related incentives viewed these incentives as very important to their compensation.

Click here to access the HSC report.

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