The impact of compensation methodology on physician clinical practice patterns

Patrick A. Rivers, Jemima Frimpong

Research output: Contribution to journalReview articlepeer-review


Strategies to improve quality of care provided in the US health care system are continuously under review. Although such is the state of care provided, elements within the system introduce additional complexities to the process. This article reviews the various effects of different payment methods within the health care system. Particular attention is given to financial incentives that entice providers who are reimbursed through specific payment arrangements. In this article we determine whether providers adjust their clinical practices when operating under financial pressures and incentives of different payment methodologies. The effect of financial incentives on quality of care appears to be mixed at best. Discussion includes the credibility and ethics of providers as well as changes to the current medical training paradigm.

Original languageEnglish (US)
Pages (from-to)55-66
Number of pages12
JournalJournal of Health Care Finance
Issue number4
StatePublished - Jun 2006


  • Capitation
  • Compensation methodology
  • Physician clinical practice patterns
  • Provider incentives
  • Quality of care

ASJC Scopus subject areas

  • Health Policy


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