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journal article PAY-FOR-PERFORMANCE: TOXIC TO QUALITY? INSIGHTS FROM BEHAVIORAL ECONOMICSInternational Journal of Health Services Vol. 44, No. 2 (2014) , pp. 203-214 (12 pages) Published By: Sage Publications, Inc. https://www.jstor.org/stable/45140334 Read and download Log in through your school or library Alternate access options For independent researchers Read Online Read 100 articles/month free Subscribe to JPASS Unlimited reading + 10 downloads Purchase article $45.50 - Download now and later Abstract Pay-for-performance programs aim to upgrade health care quality by tailoring financial incentives for desirable behaviors. While Medicare and many private insurers are charging ahead with pay-for-performance, researchers have been unable to show that it benefits patients. Findings from the new field of behavioral economics challenge the traditional economic view that monetary reward either is the only motivator or is simply additive to intrinsic motivators such as purpose or altruism. Studies have shown that monetary rewards can undermine motivation and worsen performance on cognitively complex and intrinsically rewarding work, suggesting that pay-for-performance may backfire. Journal Information The International Journal of Health Services delivers articles on health and social policy, political economy and sociology, history and philosophy, ethics and law in the areas of health and well-being. JOH provides analysis of developments in the health and social sectors of every area of the world, including relevant scholarly articles, position papers, and stimulating debates about the most controversial issues of the day. The journal is of interest to health professionals and social scientists interested in the many different facets of health, quality of life, and wellbeing of populations. Publisher Information Sara Miller McCune founded SAGE Publishing in 1965 to support the dissemination of usable knowledge and educate a global community. SAGE is a leading international provider of innovative, high-quality content publishing more than 900 journals and over 800 new books each year, spanning a wide range of subject areas. A growing selection of library products includes archives, data, case studies and video. SAGE remains majority owned by our founder and after her lifetime will become owned by a charitable trust that secures the company’s continued independence. Principal offices are located in Los Angeles, London, New Delhi, Singapore, Washington DC and Melbourne. www.sagepublishing.com Rights & Usage This item is part of a JSTOR Collection. Do financial incentives work to increase healthy Behaviours?Offering people a reward/incentive helps them to align their actions with such preferences. In this way, incentives enhance their autonomy to act according to their true underlying preferences.
How do incentives influence behavior?Incentives can be used to get people to engage in certain behaviors, but they can also be used to get people to stop performing certain actions. Incentives only become powerful if the individual places importance on the reward. Rewards have to be obtainable in order to be motivating.
Are financial incentives effective?These incentive programs may work well in the short term, but they can encourage unhealthy competition, make some workers feel hopeless and resentful about ever earning an incentive, and they don't address the main driving force behind productivity: internal motivation.
What is a financial incentive?A financial incentive is defined as: a monetary benefit offered … to encourage behaviour or actions which otherwise would not take place. A financial incentive motivates actions which otherwise might not occur without the monetary benefit.”
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