In Be Careful What You Pay For, Arnold Kling looks at four different ways of compensating physicians for medical care:
- Capitation – pay a fixed amount per year per patient
- Outcome – pay on the basis of the health of patients
- Effort – pay on the basis of labor and capital costs of providing services
- Process – pay on the basis of adherence to guidelines
Each methods has its pitfalls, but Kling argues for process-based compensation.