What if: Group-based profit-sharing strategies aligned physicians and hospitals?

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Uploaded by on Sep 6, 2011

The policy option presented here was chosen to stimulate discussion, but is only one of several options examined by the author in the report "Physician payment mechanisms: An overview of policy options for Canada."

Presenter and author: Pierre-Thomas Léger, HEC Montréal

This is one in a series that puts forward tangible policy options for addressing the sustainability of Canada's healthcare. The series presents possibilities and opportunities for improving efficiency and providing additional revenue.

On July 10, 2011, these options were presented to an international audience gathered in Toronto for the annual iHEA conference. They were selected by the presenters themselves, who are also authors of knowledge syntheses about healthcare financing that were commissioned by CHSRF (many other options are presented in their syntheses, which you will also find here).

This proposal: Profit-sharing programs allow hospitals to provide bonuses to physicians based on hospital savings. As a result, physicians have an incentive to consider the costs of the drugs and devices they use for their patients.

More at www.chsrf.ca

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