Objectives: Previous studies of performance have focused on either organizational or individual-level analysis. Multilevel theory has been used to explore the effect of the method of compensation on the quality and quantity of individual physician services after hospital global budgeting (HGB) was implemented in Taiwan. Methods: We used a sample of convenience of 33 regional hospitals that participated in HGB and surveyed managers and physicians with structured questionnaires in 2008. A total of 210 valid questionnaires from 24 hospitals were returned. We conducted hierarchical linear modeling analyses and demonstrated that both individual-level and organizational-level factors were associated with physician performance. Results: The effect of the variable compensation level on quality of physicians' service, productivity in the outpatient department (OPD) and in the inpatient department (IPD) was not significant (0.250, 0.171, 0.253, all p>.05). The ratio of beds to physicians negatively affected individual quality (-0.044, p<.01) while positively influencing productivity in and IPD (0.040, p<.05). The OPD production of physicians in public or non-profit hospitals was higher than those in private ones (43.7%, 79.1%). Physician quality and IPD production in northern hospitals was higher than that in the southern area (18.3%, 45.1%). Tenure was positively related to physicians’ productivity (0.846, p<.001; 0.523, p<.05). The OPD of internists was higher than that of 27.0% of surgeons. Overall, the individual-level factors explained 19.96%, 20.74%, 18.86% of within-hospital variance on performance and hospital-level factors explained 54.13%, 56.93%, 36.26% of between-hospital variance. Conclusions: Variable compensation did not stimulate physicians to reduce quality or productivity. Hospital features and physician performance were co-determinant, thus weakening the contextual effect of financial compensation.
Objectives: Previous studies of performance have focused on either organizational or individual-level analysis. Multilevel theory has been used to explore the effect of the method of compensation on the quality and quantity of individual physician services after hospital global budgeting (HGB) was implemented in Taiwan. Methods: We used a sample of convenience of 33 regional hospitals that participated in HGB and surveyed managers and physicians with structured questionnaires in 2008. A total of 210 valid questionnaires from 24 hospitals were returned. We conducted hierarchical linear modeling analyses and demonstrated that both individual-level and organizational-level factors were associated with physician performance. Results: The effect of the variable compensation level on quality of physicians' service, productivity in the outpatient department (OPD) and in the inpatient department (IPD) was not significant (0.250, 0.171, 0.253, all p>.05). The ratio of beds to physicians negatively affected individual quality (-0.044, p<.01) while positively influencing productivity in and IPD (0.040, p<.05). The OPD production of physicians in public or non-profit hospitals was higher than those in private ones (43.7%, 79.1%). Physician quality and IPD production in northern hospitals was higher than that in the southern area (18.3%, 45.1%). Tenure was positively related to physicians’ productivity (0.846, p<.001; 0.523, p<.05). The OPD of internists was higher than that of 27.0% of surgeons. Overall, the individual-level factors explained 19.96%, 20.74%, 18.86% of within-hospital variance on performance and hospital-level factors explained 54.13%, 56.93%, 36.26% of between-hospital variance. Conclusions: Variable compensation did not stimulate physicians to reduce quality or productivity. Hospital features and physician performance were co-determinant, thus weakening the contextual effect of financial compensation.