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Rand Corp Study of Physician Compensation Arrangements and Financial Performance Incentives in US Health Systems Finds Payment Favors Volume Not Value Based Care

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Most physicians in group practices owned by health systems are paid based on the volume of care they provide rather than value, despite payer efforts to move toward more value-based care, according to a study published in JAMA Health Forum, writes Healthcare Dive.

Volume-based compensation was the most common type of base pay for more than 80% of primary-care doctors and more than 90% of specialists at medical practices owned by health systems, according to a survey conducted, between November 2017 and July 2019, by the nonprofit Rand Corporation.

Systems still used financial incentives for quality and cost performance measures, but the percentage of total physician compensation based on quality and cost was just 9% for primary-care providers and 5% for specialists, according to Rand.

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