The Effect of an Increase in the Rate of Payment on General Practitioners’ Intrinsic and Extrinsic Motivation

OHE Research Paper 11/05

40 Pages Posted: 19 Aug 2015

See all articles by Yan Feng

Yan Feng

Office of Health Economics

Shelley Farrar

University of Aberdeen

Matt Sutton

The University of Manchester

Ada Ma

University of Aberdeen

Date Written: November 1, 2011

Abstract

This paper investigates how the increased rate of Quality and Outcomes Framework (QOF) payments implemented on 1 April 2005 affects Scottish general practitioners’ (GPs) intrinsic, extrinsic and overall motivation. A first difference method is used to model GPs’ intrinsic and overall motivation. GPs’ extrinsic motivation is modelled using a probit model and Mundlak approach. The main finding is that the increased QOF payment effectively motivated GPs’ health care supply, but it also crowded out GPs’ intrinsic motivation. The results suggests that using strong financial incentives to further motivate already well-motivated health care professionals may have unintended effects on their performance.

Suggested Citation

Feng, Yan and Farrar, Shelley and Sutton, Matt and Ma, Ada, The Effect of an Increase in the Rate of Payment on General Practitioners’ Intrinsic and Extrinsic Motivation (November 1, 2011). OHE Research Paper 11/05, Available at SSRN: https://ssrn.com/abstract=2634403 or http://dx.doi.org/10.2139/ssrn.2634403

Yan Feng (Contact Author)

Office of Health Economics ( email )

Southside
105 Victoria Street
London, SW1E 6QT
United Kingdom

Shelley Farrar

University of Aberdeen ( email )

Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

Matt Sutton

The University of Manchester ( email )

Oxford Road
Manchester, N/A M13 9PL
United Kingdom

Ada Ma

University of Aberdeen ( email )

Dunbar Street
Aberdeen, Scotland AB24 3QY
United Kingdom

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