Healthcare incentives

Health care incentives

According to McDonald et al (2007) Incentives can be defined as means which can be used to encourage a person to display behaviors or work in a manner that is required to produce good results. They can be either those that have monetary value attached to them like money and retirement benefits or those that do not have monetary value like flexible working time and safety.

Development of the incentives in health care

According an article retrieved online in the times of between 1750 and the late 1800s the health care system in the USA was providing simple medical services to the patients that included curing them at their homes using first aid skills. Sick people were taken care of at home and if the cases were critical it was when the doctors could be consulted. The health workers used to provide those services for free as they believed in doing work out of their own self motivation. Most of the health workers like nurses and doctors were not trained well in that profession.

In the early twenty century between the 1910 onwards the system that was being used was one whereby medical services could be provided to specific groups of people and they could make a monthly payment for the services this system was called a managed care system. At this time the little emphasis was give to other incentives other than the payments that the patients were making. It is at this period that the field of health began undergoing developments and several discoveries of new drugs like penicillin were being introduced into the system.

            In the 1940s onwards, through the advancements in technology they started to embrace the complex issues that were coming up in their health profession like making researches on the causes of various diseases, ways in which they could treat the diseases that they had discovered. Then they started establishing institutions where they could train and make their researches, it is around this period that medical institutions that were supported by the government came up, regulations were set to govern the health system, various health programs were established and medical insurance introduced. The health care benefits were started at this period because of the competition that was emerging in the employment of workers and the benefits were the only way that could attract the workers to various institutions.

According to Pyesons et al ( 2009) in the twenty first century we have seen the several developments in the health system both by having different players in the market who include the private sector, government institutions and religious organizations who are operating either for profit or not for profit. Labor unions have also been created to make sure health workers get incentives like any other people in other professions. The level of competition in the provision of health care services has now initiated the provision of incentives to workers so as to take care of the changing economic times.

Recent developments

As argued by the medical journal (2006) the incentives in the health profession were not given any regard in the past as the health workers were expected to act purely according to their profession’s ethics and the Hippocratic Oath. As of now things have changed and there is need to motivate, attract and improve the performance of the heath workers so as to enhance good service delivery in the health care systems. A number of incentives supported by the governments and other private institutions are coming up which include departments for that care for terminal diseases like cancer, payment for performance standards achieved, establishment of funds that cater for terminal diseases, offering of study leaves and paying for them, job promotions, provision of health care services for the health care workers and their families for free, flexible working schedules, sponsorship for new researches and better payments in terms of salaries and other allowances.

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The evolution of the US health care system: science and its times

Retrieved online: http:// -evolution-of-the-healthcare

McDonald, R Harrison, S.Checkland, K. Campbell, S. & Roland, M. (19th June 2007).

Impact of financial incentives on clinical autonomy and international motivation in primary care: ethnographic study. BMJ publishing group limited.

Retrieved online:

International journal for quality in health care (2006).the right incentives for high quality, affordable care: a new form of regulated competition. Volume 18, 261-263.

Pyesons, B Perlman, J. and McKay, K (2009). Vanderbilt medical center: incentives and barriers to systematic change. Retrieved online


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