In April 2003 a new payment system for hospitals called Payment by Results (PbR) was introduced in England. The new system is a fixed tariff case-mix based prospective payment system which reimburses hospitals for the type and amount of care they provide. By linking provider income more closely...

Non-pecuniary sources of motivation are a strong feature of the health care sector and the impact of competitive incentives may be lower where pecuniary motivation is low. We test this hypothesis by measuring the marginal utility of income of physicians from a stated-choice experiment, and...