Methods of paying health providers have been extensively studied in health economics. Bonus as a powerful incentive has been widely used to boost staff morale and improve productivity in hospitals. This may, however, also create unintended consequences. This study analyzes primary data collected from a physician survey in China and demonstrates that the extensive use of quantity-based bonuses has not only led to the provision of unnecessary care but also crowded out physician’s intrinsic motivations, resulting in a decline in the quality of services. More appropriate physician remuneration mechanisms must be introduced in China’s ongoing health reform. Copyright © 2016 Springer Science+Business Media New York.
CitationQian, J., & He, A. J. (2018). The bonus scheme, motivation crowding-out and quality of the doctor-patient encounters in Chinese public hospitals. Public Organization Review, 18(2), 143–158. doi: 10.1007/s11115-016-0366-y
- Public hospital
- Provider payment
- Doctor-patient relationship