Value-based payment

Value-based payment – or the notion of increasing physicians’ reimbursement for higher quality of care at a lower cost – is often considered a policy lever for incentivizing more efficient care through physician behavior. It is unclear (https://link.springer.com/article/10.1007/s11606-017- 4243-3) whether such programs effectively improve care across all populations, including racial minorities. Using economic theory on physician discrimination, what (if any) impact do you think value-based payment for physicians would have on racial disparities? Under what circumstances would this type of program be successful? Unsuccessful? You may discuss any of these questions or other thoughts you have on this payment program as it relates to racial disparities and physician behavior.