The RAND Corporation's COMPARE initiative provides information and tools to help policymakers, the media, and others understand, design, and evaluate health care policies. The COMPARE Web site presents a range of policy options that allows the user to explore the effects of commonly proposed health care reforms.
This document explores how physician pay for performance (P4P) programs would affect health system performance along nine dimensions. How physician P4P programs would affect health care spending depends strongly on program design. Effects on the reliability with which appropriate care is provided, patient experience, and health are uncertain. P4P programs are not relevant to consumer financial risk, coverage, and capacity. Broad implementation of physician P4P is technically feasible but would require substantial investments in infrastructure and resources to support implementation and ongoing operations. Implementation would be especially challenging in small physician practices, which lack dedicated staff to help with implementation and adherence.
This report is part of the RAND Corporation Technical report series. RAND technical reports may include research findings on a specific topic that is limited in scope or intended for a narrow audience; present discussions of the methodology employed in research; provide literature reviews, survey instruments, modeling exercises, guidelines for practitioners and research professionals, and supporting documentation; or deliver preliminary findings. All RAND reports undergo rigorous peer review to ensure that they meet high standards for research quality and objectivity.
This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.
The RAND Corporation is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.