Posted on: Wednesday, July 11, 2001

HMO bonus for patient satisfaction gains ground

Associated Press

LOS ANGELES — Blue Cross of California said yesterday it will begin paying bonuses to its doctors according to how good they are at making their patients happy — not how well they hold down costs.

One of the nation's largest health maintenance organizations to adopt the new approach, Blue Cross said it will eliminate cost-containment bonuses and instead use a survey of patients to determine special rewards for doctors.

The survey will monitor patients' grievances and determine when and why they switch doctors. The doctors also will also be evaluated on how well they provide preventive health measures such as breast and cervical cancer exams.

Doctors could receive bonuses of up to 10 percent if they score well.

Blue Cross of California, with 2.2 million members and some 20,000 physicians under contract, joins several other HMOs in modifying their bonus plans to favor patient satisfaction.

Dr. Oliver Goldsmith, medical director for the Southern California Permanente Group, said the Kaiser HMO has used a similar incentive system for years.

Blue Cross and other health maintenance organizations have long offered financial incentives to doctors to hold down costs — a practice that critics say leads physicians to skimp on medical care.

Blue Cross spokesman Michael Chee said competition prompted the new policy, which is not expected to cost more.

Health-care industry watchdogs were skeptical of the move, which comes amid congressional debate over the patients' bill of rights.

"This is clearly an attempt to pre-empt legislative action," said Jamie Court, executive director of the Foundation for Taxpayer and Consumer Rights.