In the context of implementing the PFP plans in healthcare organizations along with their impacts on qualitative and clinical indicators (review of executive indicators to identify challenges and those that need to be reformed), numerous studies have been conducted in different countries which were briefly mentioned as follows to facilitate comparing the findings of the present study with the results provided in the related literature.
In this respect, the results of a systematic review in the domain of PFP plans indicated that the majority of studies had failed in confirming the positive effect of the given plan. Part of the results of these investigations had only pointed to the unfairness existing in the PFP plans, which was consistent with the findings of the present study (
19).
Moreover, Hasnain et al., conducted a study aiming to provide a specific theoretical perspective based on empirical studies of PFP plans to achieve the lesson learned by policy-makers in developed countries. Their findings from a total number of 110 studies on PFP plans showed that the majority of the studies (68 out of 110 studies) had endorsed the positive effects of PFP plans. In these studies, it was stated that the performance indicators of the employees were related to their bonuses and they had beneficial effects on employee satisfaction and the quality of their work, as well. However, other studies identified some content-related and structural challenges (including respect for fairness and quality of services) as constraints and challenges to the implementation of the plan and proposed that addressing these challenges was the main priority of the managers to better implement the PFP plan (
20).
Some of the constraints and challenges of the content and the implementation of the PFP plan, based on the findings of Gerhart and Fang, were as follows: money was not merely a motivator, the PFP plan was only partly related to internal motivation to work in individuals, the plan had resulted in a decrease in people’s willingness to work for a group and team, measuring performance was not sometimes sufficiently accurate and precise and lastly, this method might be very unfair in some cases, especially for workers inflicted with Hawthorn effect or they might play badly and do things to gain higher ratings in their performance evaluation (
21).
The findings of a systematic review examining the results of 128 studies on the effects of PFP plans in healthcare organizations suggested little evidence of the impact of PFP plans on coordination, continuity, patient-centeredness, and cost-effectiveness of the services. They claimed that PFP plans could lead to motivation in employees if properly and intelligently implemented; otherwise, they could cause dissatisfaction and frustration. In fact, the success of a plan depended on its correct design and implementation. The results of this study demonstrated that, in addition to the implementation challenges of the PFP plan, there were some basic problems in the design of the plan including the determination of the coefficients and the performance rating methods (
22).
Investigating the effect of PFP plans on quality of care for patients with blood pressure in the UK similarly showed that the quality of care for patients suffering from high blood pressure, prior to the implementation of the plan, was good and acceptable at a relatively high level; nevertheless, after its implementation, no significant and desirable effects were observed on the care process or the results of clinical care services to such patients. The study results indicated that financial incentives, as predicted in the PFP plan, appeared not to improve the quality of care and outcomes for individuals with chronic diseases and high blood pressure (
23). The results of the present study also suggested that, first, financial incentives were not effective by themselves in terms of promoting the quality of service delivery but internal motivators were required to be also taken into account; second, financial incentives of the plan were more likely to be attributed to nurses’ quantitative performance which could influence the quality of services.
In this regard, Werner et al. in their study examined the impact of PFP plans implemented in 260 hospitals of Philadelphia with hospitals that had been chosen as controls and covered by the Centers for Medicare and Medicaid Services. Accordingly, they compared the performance of the staff working in these hospitals with those in 780 hospitals that had been paid with bonuses through a PFP plan. The results showed that the performance of the hospitals in the study group had improved at the beginning of the plan compared to the control group, but after five years, the performance rating of the two groups was almost identical. Moreover, improvements were seen in hospitals that were more likely to attract more budgets to pay more benefits or they were acting in less competitive environments. The given researchers concluded that PFP plans for such hospitals could have positive impacts on the quality of staff performance (
24).
Furthermore, Alshamsan et al. in their systematic review of the effects of a PFP plan shed light on the effects of such a plan on the quality and outcomes of services in healthcare centers and found 22 studies with 20 investigations in the UK. The findings from the given review showed that there was little evidence of that the use of financial incentives could reduce inequalities among different socioeconomic groups. In fact, inequity had even continued after the implementation of such plans in providing services to patients with chronic diseases, and among people of different age, gender, and ethnic groups. The researchers also argued that a PFP plan needed to be designed and implemented with the aim of moderating inequalities and improving the overall quality of healthcare services (
25).
Epstein, in his study aimed at examining the effect of PFP plans on the quality of care, investigated 250 Canadian hospitals that had implemented the PFP plans. The results of the study showed that 2.6 to 4.1% of the improvements had been observed in the process quality indicators of these hospitals during the first two years of implementation of the plan. They also claimed that the quality criteria of PFP plans needed to be broadened and the incentives were required to promote the quality of care higher than the current level. On the other hand, higher motivators could reduce the access and quality of services to those sick and critically ill because any changes in the plans could usually affect both groups, which would improve the conditions for some people and they would not have any desired effects for others (
26).
Jannati et al. also conducted a study on the effect of PFP plans on the efficiency of the laboratory unit of Imam Reza Teaching Hospital in the city of Tabriz, Iran. This study was an interventional research with a pretest/posttest design. In order to consider the changes, performance indicators were measured and compared from the beginning of 2012 to the end of 2012. The data were then collected by checking documents of the laboratory unit and the accounting center manually. Descriptive statistics were also used to compare the efficiency before and after the intervention. The findings indicated no significant difference in costs after the intervention compared to the pre-intervention stage, but the incomes of the laboratory unit were slightly higher than those before. Furthermore, laboratory errors had even increased compared to those before the intervention (from zero to 17 cases). Regarding these findings, it could be argued that incentives could be determined by setting predetermined goals and considering negative points for laboratory errors for all personnel at all levels of service delivery, including primary healthcare provider centers, pharmacies, diagnostic service providers, and the entire hospital (
27).
In the present study, one of the challenges emphasized by interviewees was the infrastructural problems of the plan. Tavakoli et al. in their study entitled “Investigation into weaknesses of the performance-based plan in selected teaching hospitals” in the city of Isfahan, Iran, in 2015 addressed the three main weaknesses of the given plan, including flaws in policy formulation, delays in giving instructions, and weaknesses in setting up and constructing infrastructure. The findings of the present study also indicated that the PFP plan had its own weaknesses. One of the negative points in implementing this plan after the revisions was the incorrect development of policies in the new plan. Systematic pays and performance-related interventions could also lead to discrimination and result in objections among the high-paid ones through the policies of paying low pays for their performance (
18).
Moreover, Toulideh et al. conducted a cross-sectional research on the relationship between mechanisms of service compensation and job performance among nurses in 2013 in Valiasr Hospital and Lolagar Hospital in the city of Tehran, Iran. A total number of 221 nurses from two hospitals were randomly selected using a stratified random sampling method. The five-dimensional job performance questionnaire by Schwirin and a researcher-made job compensation questionnaire were also used for data collection. The results of the study showed that the nurses’ job performance was moderate overall. Among the methods of service compensation, giving incentives, the possibility of continuing education, career promotion, and PFP were of the highest priority, in sequence. It was also noted that there was a statistically significant correlation between job performance and performance-related compensation, incentive periods, non-cash payments, monthly fixed payments, service tariff increases, and lowered working hours. Finally, it could be said that how nurses were paid could be considered as a major factor in their satisfaction and encouragement, and if this compensation process was properly managed, it could be an effective factor in supporting clinical care, job performance, and innovation (
28).
5.1. Conclusions
The success or failure of a PFP plan can depend first on planning for it and second on how it is implemented. Despite numerous advantages of the implementation of this plan for some employees, a growing discontent was observed in some others. According to the findings of the study, reviewing the principles of paying employees according to the coefficients appropriate to each occupation, paying much more attention to the qualitative aspects of employee performance, and computing the payments based on individual performance not on the income of the departments seem to be necessary. Therefore, implementing this plan could result not only in benefits but also in observing equity and fairness. Therefore, the in-depth review of such plans and the involvement of stakeholders in drafting and developing laws and guidelines could reduce some of the challenges of implementing the PFP plan. It was hoped that the results of this study would enable decision-makers and planners to correct existing challenges and consequently promote them.