PMID- 33182846 OWN - NLM STAT- MEDLINE DCOM- 20210127 LR - 20210127 IS - 1660-4601 (Electronic) IS - 1661-7827 (Print) IS - 1660-4601 (Linking) VI - 17 IP - 22 DP - 2020 Nov 10 TI - Performance Pay in Hospitals: An Experiment on Bonus-Malus Incentives. LID - 10.3390/ijerph17228320 [doi] LID - 8320 AB - Recent policy reforms in Germany require the introduction of a performance pay component with bonus-malus incentives in the inpatient care sector. We conduct a controlled online experiment with real hospital physicians from public hospitals and medical students in Germany, in which we investigate the effects of introducing a performance pay component with bonus-malus incentives to a simplified version of the German Diagnosis Related Groups (DRG) system using a sequential design with stylized routine cases. In both parts, participants choose between the patient optimal and profit maximizing treatment option for the same eight stylized routine cases. We find that the introduction of bonus-malus incentives only statistically significantly increases hospital physicians' proportion of patient optimal choices for cases with high monetary baseline DRG incentives to choose the profit maximizing option. Medical students behave qualitatively similar. However, they are statistically significantly less patient oriented than real hospital physicians, and statistically significantly increase their patient optimal decisions with the introduction of bonus-malus incentives in all stylized routine cases. Overall, our results indicate that whether the introduction of a performance pay component with bonus-malus incentives to the (German) DRG system has a positive effect on the quality of care or not particularly depends on the monetary incentives implemented in the DRG system as well as the type of participants and their initial level of patient orientation. FAU - Kairies-Schwarz, Nadja AU - Kairies-Schwarz N AD - Faculty of Economics and Business Administration & CINCH-Health Economics Research Center, University of Duisburg-Essen, 45127 Essen, Germany. FAU - Soucek, Claudia AU - Soucek C AD - Faculty of Economics and Business Administration & CINCH-Health Economics Research Center, University of Duisburg-Essen, 45127 Essen, Germany. LA - eng PT - Journal Article PT - Research Support, Non-U.S. Gov't DEP - 20201110 PL - Switzerland TA - Int J Environ Res Public Health JT - International journal of environmental research and public health JID - 101238455 SB - IM MH - Female MH - Germany MH - *Hospitals/standards/trends MH - Humans MH - Male MH - *Motivation MH - *Physicians/economics/standards MH - *Quality of Health Care/economics MH - Students, Medical PMC - PMC7697549 OTO - NOTNLM OT - artefactual field experiment OT - bonus-malus incentives OT - diagnosis related groups OT - laboratory experiment OT - pay for performance COIS- The authors declare no conflict of interest. The funders had no role in the design of the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript, or in the decision to publish the result. EDAT- 2020/11/14 06:00 MHDA- 2021/01/28 06:00 PMCR- 2020/11/01 CRDT- 2020/11/13 01:04 PHST- 2020/09/29 00:00 [received] PHST- 2020/11/06 00:00 [revised] PHST- 2020/11/06 00:00 [accepted] PHST- 2020/11/13 01:04 [entrez] PHST- 2020/11/14 06:00 [pubmed] PHST- 2021/01/28 06:00 [medline] PHST- 2020/11/01 00:00 [pmc-release] AID - ijerph17228320 [pii] AID - ijerph-17-08320 [pii] AID - 10.3390/ijerph17228320 [doi] PST - epublish SO - Int J Environ Res Public Health. 2020 Nov 10;17(22):8320. doi: 10.3390/ijerph17228320.