Abstract

This article explores the growing trend of physician executive pay-for-performance plans in the U.S. and Canada and discusses the underlying principles of incentive-based compensation models. Pay-for-performance plans are becoming increasingly popular with boards of many healthcare organizations across the country. They may offer an opportunity for increased accountability in the context of the 2003 Health Accord. Although there is little current evidence to support the notion that incentive-based compensation has long-term implications for quality improvement, their popularity continues to increase.