Viewpoint: why variable pay-for-performance in healthcare can backfire: Evidence from psychological economics

Purpose – The purpose of this “viewpoint” is to consider the unintended consequences of variable pay and incentive schemes in healthcare environments. Design/methodology/approach – Reviews a series of side effects of incentives. Findings – The paper suggests that pay-for-performance schemes should be avoided. Originality/value – The area of public sector boards is undergoing considerable change in the UK and this paper, although preliminary, is one of the few to examine the links to motivation.