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The Bonus Scheme, Motivation Crowding-out and Quality of the Doctor-Patient Encounters in Chinese Public Hospitals

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  • Jiwei Qian

    (National University of Singapore)

  • Alex Jingwei He

    (The Education University of Hong Kong, Hong Kong)

Abstract

Methods of paying health providers have been extensively studied in health economics. Bonus as a powerful incentive has been widely used to boost staff morale and improve productivity in hospitals. This may, however, also create unintended consequences. This study analyzes primary data collected from a physician survey in China and demonstrates that the extensive use of quantity-based bonuses has not only led to the provision of unnecessary care but also crowded out physician’s intrinsic motivations, resulting in a decline in the quality of services. More appropriate physician remuneration mechanisms must be introduced in China’s ongoing health reform.

Suggested Citation

  • Jiwei Qian & Alex Jingwei He, 2018. "The Bonus Scheme, Motivation Crowding-out and Quality of the Doctor-Patient Encounters in Chinese Public Hospitals," Public Organization Review, Springer, vol. 18(2), pages 143-158, June.
    • Handle: RePEc:kap:porgrv:v:18:y:2018:i:2:d:10.1007_s11115-016-0366-y
    DOI: 10.1007/s11115-016-0366-y
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    2. De Pril, Julie & Godfroid, Cécile, 2020. "Avoiding the crowding-out of prosocial motivation in microfinance," The Quarterly Review of Economics and Finance, Elsevier, vol. 77(C), pages 108-117.

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