This study found that bonus system change over time contributed significantly to the increase in hospital service revenue and hospital cost recovery. There was an increase in unnecessary care and in the probability of admission when the bonus system switched from one with a weaker incentive to increase services to one with a stronger incentive, suggesting that improvement in the financial health of public hospitals was achieved at least in part through the provision of more unnecessary care and drugs and through admitting more patients.
Human Resources for Health (2005) 3 (11) [doi: 10.1186/1478-4491-3-11]
Performance-related pay to hospital-based doctors: a case study in China
Published 4 December 2006