The impact of compensation methodology on physician clinical practice patterns

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.