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• W2083875956 abstract "This paper examines the effect of the change from a retrospective to a prospective regulatory procedure, for reimbursing Medicare costs, on the use of bonus-based compensation contracts for senior-level hospital administrators. For a large sample of hospitals from a national survey, our results suggest that hospitals which were relatively inefficient in the time period prior to the institution of the prospective payment system tended to use contracts with larger bonuses as a percentage of base salary in the time period after this regulatory change. That is, hospitals with a relative financial condition most adversely affected by the regulatory change seem to have used bonus contracts in an attempt to motivate the administrators to improve operating efficiency and performance. We also found that hospitals were less likely to use bonus-based compensation contracts if the hospital's activities were closely monitored (by the board of directors or by the state). This result is consistent with the agency theory notion that monitoring activities and bonuses can both be used as motivational devices." @default.
• W2083875956 created "2016-06-24" @default.
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• W2083875956 date "1995-03-01" @default.
• W2083875956 modified "2023-09-23" @default.
• W2083875956 title "The prospective payment system, hospital efficiency, and compensation contracts for senior-level hospital administrators" @default.
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• W2083875956 doi "https://doi.org/10.1016/0278-4254(94)00022-s" @default.
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