The Hawaii Medical Service Association said it has awarded $10 million in incentives to local physicians this year as part of an effort to improve the quality of Hawai'i's healthcare system.

The state's largest health insurer said this year's incentives are on top of $10.5 million that the company paid last year to local doctors in its preferred provider plan.

HMSA said it has awarded another $6 million in incentives this year to 17 local hospitals, which was about the same amount that the company paid last year to local medical centers.

"Physicians and hospitals that adhere to nationally recognized practice guidelines and standards of care ... keep our members healthy. This also keeps healthcare costs down," said John Berthiaume, HMSA vice president and medical director.

The nonprofit HMSA has been one of the first health plans in the country to provide pay-for-performance programs. The company, which last year collected $1.81 billion in dues revenues, said it paid $113 million to local physicians and hospitals since 1998.

HMSA said the pay-for-performance programs have helped improve the overall quality of healthcare service.

Quality measures monitored by HMSA's incentive programs show that: