MANAGING INCENTIVE PAYMENTS IN PRIMARY HEALTH CARE: BUSINESS SOLUTIONS FOR SUSTAINABLE HEALTHCARE DEVELOPMENT

2025

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DOI 10.47526/yjohs-2025.3-18
Data confidence 70 medium
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Abstract

This study examines incentive payment schemes in primary care and their impact on healthcare effectiveness and equity. We analyze four principal remuneration models: Fee-for-Service, Capitation Financing, Pay-for-Performance (P4P), and hybrid approaches. Kazakhstan introduced capitation financing with P4P elements in 2009. Our analysis identifies three fundamental paradoxes in this system. First, weak risk-adjustment mechanisms chronically underfund facilities serving vulnerable populations. Second, payment delays undermine financing predictability and create financial instability. Third, incentives for selective patient enrollment contradict universal health coverage goals. The P4P component shows additional weaknesses: questionable quality indicators, inadequate outcome attribution, and poor integration across care levels. Based on international experience (Kyrgyzstan, Uzbekistan, United States), we propose four optimization strategies: strengthening risk-adjustment models; refining P4P mechanisms with emphasis on equity and provider support; eliminating payment delays; and developing comprehensive motivation frameworks that combine adequate base salaries and fair capitation rates with non-financial incentives such as professional development and improved working conditions. Our findings show that financial mechanisms without broader systemic support generate counterproductive incentives. These results inform remuneration policy development, primary care quality improvement, and healthcare expenditure optimization.