Medicare has increased the use of performance pay incentives for hospitals, with the goal of increasing care coordination across providers, reducing market frictions, and ultimately to improve quality of care. This paper provides new empirical evidence by using novel operations and claims data...

Medicare has increased the use of performance pay incentives for hospitals, with the goal of increasing care coordination across providers, reducing market frictions, and ultimately to improve quality of care. This paper provides new empirical evidence by using novel operations and claims data...

Policy makers are increasingly tying payments for health care providers to their performance on quality measures, though there is little empirical evidence to guide the design of such incentives. I deploy administrative Medicare claims data to study a large federal program which penalizes...