To effectively engage physicians in cost-control initiatives, health care organizations need to design incentive systems that consider whether they should be broad or narrow, and individual- or team-based. This system must also evaluate the duration and amount of compensation, as well as the balance between financial and nonfinancial incentives, to ensure they resonate with physicians and ultimately benefit both patient outcomes and organizational finances.
Physicians routinely make daily decisions impacting financial resources, such as drug selection and the utilization of hospital facilities. By aligning incentives with these decisions, hospitals can motivate physicians to contribute actively towards cost management while not compromising on the quality of patient care.
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