Allocation of health care under pay for performance: Winners and losers

Many physicians receive a payment for their performance (P4P). This is often linked to health target that triggers bonus when met. For some patients the easily met, while others require significant amount of care reach (if ever). study contributes literature by providing evidence how P4P affects allocation across with low and high responsiveness treatment compared fixed payment, such as capitation salary, under different degrees resource constraint. Our based on controlled laboratory experiment involving 143 medical students in Denmark 2019. We find who have potential target, gain P4P, whereas no it, may less care. Redistribution between arises are constrained. As many currently operating tight constraints, policymakers should be careful avoid unintended inequalities patients’ access introducing P4P. Risk-adjusting potentially solve this issue.