MARCH 30, 2007
VOLUME 4 NO. 6

POLICY & POLITICS

Study: US docs favour pay-for-performance

Canadian MDs may soon dip toes into P4P but serious concerns remain


The majority of American physicians — 73% — support a pay-for-performance (P4P) funding system for individual physicians, according to the results of a new survey published in the current issue of Health Affairs. But the same survey, which polled 556 American general internists, also found that 68% were not in favour of public reporting of their quality measures.

The apparently contradictory results are less confusing if you look carefully at the wording of the questions, explained lead investigator Dr Lawrence Casalino, an assistant professor in the Department of Health Studies at the University of Chicago. The first question asked whether they agreed with the statement "If the measures are accurate, physicians should be given financial incentives for quality." The key, said Dr Casalino, is in those first five words.

"'If the measures are accurate' is a big caveat," Dr Casalino said, "because less than a third think the measures are accurate." The survey revealed that most doctors just don't trust the government and health authorities on the accuracy of these measures. But despite these physician misgivings, P4P looks set to expand across the US and, eventually, to Canada.

WHAT R U P4P?
P4P programs vary from place to place, but what's common to all of them is the connection of quality measures to financial incentives. For instance, a typical measure is an annual calculation of the percentage of women in a family physician's practice who got a mammogram in the past year — or the percentage who were notified by email or phone about coming in for a mammogram. (P4P is almost exclusively used for primary care physicians, not specialists.)

"The measures are quite basic and the things they measure are reasonably important," said Dr Casalino. "But physicians point out these things measure a small fraction of what they do and there are other things that don't get measured." A commonly cited example of an unmeasurable process is diagnosis — perhaps a GP's most important role.

"P4P is sometimes talked about as incentives for trying harder," said Dr Casalino, "but that is wrong — physicians are already trying hard. It is really about getting physicians to organize care, to set in place processes to improve quality, like setting up automated mail or email or phone reminders to get women in to get a mammogram."

P4P programs are sometimes combined with public reporting systems, which serve as yet another incentive for physicians to improve the quality of their care.

PERVERSE INCENTIVES
The accuracy of doctor assessments is far from the only criticism levelled against P4P. There are concerns that the extra bureaucracy created by the system would erode physician autonomy, because an incentive system will mean that administrators (non-MDs) could potentially make decisions about how to treat patients. So doctors' attention might be misallocated to relatively unimportant things that are measured instead of important things that are not — critics call these "perverse incentives."

Another potential stumbling block for P4P is the way it rates doctors who treat disadvantaged populations. From past experience in the US and UK, it's been observed that those patients — who often lack reliable transportation or who cannot speak the doctor's language well — will come in less often for mammograms and other regular check-ups — driving down a doctor's quality measures. This raises fears that a P4P system could give incentives to doctors to avoid treating sick or noncompliant patients — a potentially huge perverse incentive that could increase class disparity. (That problem has already been observed on a large scale in New York by Dr Rachel Werner, who studied the effect of public reporting on cardiac surgeons' racial profiling.) "One way to deal with that would be to pay for the absolute score [on a quality measure], and for improvement," said Dr Casalino. "If you start off poorly [in a measurement area], you can get paid more for improvement."

Another solution to that problem has already been adopted in the UK, where doctors can now enact an exclusion clause that allows them to exclude a percentage of patient records they do not consider representative of their practice.

WARNING SIGN
The conditional support for P4P indicated by the new survey should be a warning sign for the policymakers looking to implement P4P systems, said Dr Casalino. This is a critical period, he said: "The time to address [doctors' worries] is now, before physicians squawk about what a lousy system it is."

Canada must also proceed with caution, said Dr Thomas Feasby, a University of Alberta neurologist and co-author of the 2006 Law & Governance essay "Pay for Performance — Can It Work In Canada?"

PRUDENT LAGGARDS
Canada is a step behind the United States in introducing P4P, and several leaps behind the UK, but we may soon be joining our international peers in changing the way doctors are paid.

"In a way we are just as well to be lagging behind," said Dr Feasby. "Maybe we're a little more cautious here, but we can learn a lot from the US and the UK."

A compromise might be struck between P4P and our current pay-for-volume, suggested Dr Feasby, but he nevertheless insists that P4P is inevitable in Canada in one form or another.

In fact, P4P is already on its way in Canada. Discussions have begun in Alberta, said Dr Feasby, though no action has been taken there yet. And Ontario is considering P4P in its long-term planning. A recent Ontario Ministry of Health and Long-Term Care essay called "Sustainability through Supply Manage-ment" proclaims that "[m]ore and more research demonstrates a positive effect of pay-for-performance on quality objectives." The paper recommends that policymakers take a closer look at P4P.

 

 

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