Opinion
Why pay-for-performance schemes are destined to fail
Australia has a track record of flirting with healthcare reform ideas that have failed overseas. The latest hype seems to be about performance indicators, targets and pay-for-performance.
It is tempting to pay doctors when their patient, for example, has a lower blood pressure, loses weight or improves sugar levels. However, pay-for-performance schemes have been tried elsewhere in the world with disappointing results.
For example, performance management has gone wrong in the British Quality and Outcome Framework pay-for-performance system and resulted in:
- only modest – and often not long-lasting – improvements in quality
- decreased quality of care for conditions not prioritised by the pay-for-performance system
- no reduction of premature mortality
- loss of the patient-centeredness of care
- reduced trust in the doctor–patient relationship
- reduced access to GPs
- decreased doctor morale
- billions of pounds in implementation costs.
As Goodhart’s law says: ‘When a measure becomes a target, it ceases to be a good measure’.
Primary care is a complex system. Quality improvement processes that are traditionally applied to linear mechanical systems, like isolated single-disease care, are
not very useful for complex systems.
There is now a trend away from performance-management schemes In the UK and Scotland. We need to test new models of care in the Australian context, but we must avoid making the mistakes others have made before us.
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