Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
KevinMD
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking
  • About KevinMD | Kevin Pho, MD
  • Be heard on social media’s leading physician voice
  • Contact Kevin
  • Discounted enhanced author page
  • DMCA Policy
  • Establishing, Managing, and Protecting Your Online Reputation: A Social Media Guide for Physicians and Medical Practices
  • Group vs. individual disability insurance for doctors: pros and cons
  • Kevin Pho, MD | Primary care physician in Nashua, NH
  • KevinMD influencer opportunities
  • Opinion and commentary by KevinMD
  • Physician burnout speakers to keynote your conference
  • Physician Coaching by KevinMD
  • Physician keynote speaker: Kevin Pho, MD
  • Physician Speaking by KevinMD: a boutique speakers bureau
  • Privacy Policy
  • Recommended services by KevinMD
  • Terms of Use Agreement
  • Thank you for subscribing to KevinMD
  • Thank you for upgrading to the KevinMD enhanced author page
  • The biggest mistake doctors make when purchasing disability insurance
  • The doctor’s guide to disability insurance: short-term vs. long-term
  • The KevinMD ToolKit
  • Upgrade to the KevinMD enhanced author page
  • Why own-occupation disability insurance is a must for doctors

How pay for performance leads to overdiagnosis and overtreatment

Peter Ubel, MD
Conditions
October 8, 2014
Share
Tweet
Share

Not long ago, the Joint Commission established that patients with pneumonia should receive antibiotics within four hours of diagnosis. Timely diagnosis and treatment can be the difference between life and death in patients with this illness. In fact, some people believe this kind of quality measure should play a large role in how we pay for medical care. After all, doctors should not be paid solely on the basis of how much care they provide, but also based on the quality of that care. All else equal, a physician who treats pneumonia efficiently should be rewarded more handsomely than one who takes a fortnight to make a diagnosis.

Only one problem with this seemingly sensible view. Experts believe this four-hours-to-treat requirement leads to an overdiagnosis of pneumonia and, consequently, to an overuse of antibiotics. How we measure health care quality, and how we factor such measures into physician reimbursement, can have surprising effects on how physicians diagnose and treat patients.

Consider another life-threatening illness: sepsis, a syndrome of widespread inflammation and, at its most extreme, multi-organ failure caused by infection. Sepsis typically requires not only high power antibiotics but also intensive care from multiple specialists. A recent article in the New England Journal of Medicine suggests we may be experiencing an overdiagnosis of this syndrome, because hospitals often receive higher reimbursement for patients with sepsis than for ones with milder infections. In other words, it pays not to miss sepsis diagnoses.

As the New England Journal article points out, the rate of sepsis has been climbing in recent years, even though the infections most-likely to lead to sepsis have been stable or declining in numbers:

Sepsis-640

The moral of this story is not simple.  In fact, I raise this topic primarily as a caution to those who think better quality measurement is the key to improving health care performance. First, this story confirms that medical diagnoses aren’t purely objective, scientific exercises. Instead, they often rely upon judgment calls. There’s no absolute threshold where physicians can determine that a given infection is severe enough, inflammatory enough, to qualify as sepsis.

Second, the rise of sepsis diagnoses reveals how health care payment can influence medical judgments. We have known this for while in the U.S. We knew long ago that fee-for-service payment incentivizes health care providers to overdiagnose and overtreat patients. And we learned, when Medicare introduced lump payment systems in the 1980s — paying hospitals a fixed fee based on patients’ diagnoses — that hospitals would choose among possible diagnoses to find ones that maximized their income.

Now we know that quality measures, linked to patient diagnoses, could create similar problems. The judgments clinicians make, about what diagnoses patients have, are not independent of the way they’re paid for care. Diagnoses are not always hard and fast, but are often vague and mushy. These mushy diagnoses do not exist only because of burdensome government regulations or greedy health care providers. They exist because medical care is a sloppy enterprise. Diagnoses are not always kind enough to present themselves unambiguously. Streptococcal bacteria do not always announce when they have transformed from being harmless to pathologic to sepsis-provoking.

Because of the inherent subjectivity of medical diagnoses, those groups that assess health care quality need to remain on the alert for the unintended consequences of their measures.  And those insurers and regulators eager to establish clinical care mandates? They need to slow down and make sure their administrative fixes do not create undue side effects.

Peter Ubel is a physician and behavioral scientist who blogs at his self-titled site, Peter Ubel and can be reached on Twitter @PeterUbel.  He is the author of Critical Decisions: How You and Your Doctor Can Make the Right Medical Choices Together. This article originally appeared in Forbes.

Prev

Nursing homes: Our society has chosen to see only darkness

October 8, 2014 Kevin 1
…
Next

The problem with primary care residency programs

October 8, 2014 Kevin 4
…

Tagged as: Hospital-Based Medicine, Infectious Disease

< Previous Post
Nursing homes: Our society has chosen to see only darkness
Next Post >
The problem with primary care residency programs

ADVERTISEMENT

More by Peter Ubel, MD

  • Clinicians shouldn’t be punished for taking care of needy populations

    Peter Ubel, MD
  • Patients alone cannot combat high health care prices

    Peter Ubel, MD
  • Is the FDA too slow to handle the pandemic?

    Peter Ubel, MD

More in Conditions

  • Why medicine ignores its Cassandras: a case study in health disparities

    Ronald L. Lindsay, MD
  • The sensing gap: Why medical AI misses critical diagnoses

    John C. Ferguson, MD
  • Essential personnel safety: the hypocrisy of hospital snow policies

    Debbie Moore-Black, RN
  • Finding balance in political turmoil: a poem on resilience

    Michele Luckenbaugh
  • Books that shape life values: a lifelong reading list

    Richard A. Lawhern, PhD
  • Artificial intelligence and the future of fetal heart rate monitoring

    Martin G. Frasch, MD, PhD, Mark I. Evans, MD, and Philip J. Steer, MD
  • Most Popular

  • Past Week

    • The Blanket Sign: Recognizing difficult patient encounters in the ER

      George Issa, MD | Physician
    • How board certification fuels the physician shortage crisis

      Brian Hudes, MD | Physician
    • The future of U.S. medicine: 10 health care trends in 2026

      Richard E. Anderson, MD & The Doctors Company | Physician
    • The passion vine: a lesson on restraint in medicine and life

      Rao M. Uppu, PhD | Conditions
    • The Platinum Rule in health care: Moving beyond the Golden Rule

      Harvey Max Chochinov, MD, PhD | Conditions
    • American health care policy reform: Why we need a bipartisan commission

      Steve Cohen, JD | Policy
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • From Singapore to Canada: a blueprint for primary care transformation

      Ivy Oandasan, MD | Policy
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Sabbaticals provide a critical lifeline for sustainable medical careers [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why Medicare must cover atrial fibrillation screening to prevent strokes

      Radhesh K. Gupta | Conditions
    • Why medical school DEI mission statements matter for future physicians

      Aditi Mahajan, MEd, Laura Malmut, MD, MEd, Jared Stowers, MD, and Khaleel Atkinson | Education
  • Recent Posts

    • How to handle clinical disagreement with patients

      Muhamad Aly Rifai, MD | Physician
    • The economic shift from fee-for-service to direct primary care

      Dana Y. Lujan, MBA | Policy
    • The quiet paradox of physician mental health and medication

      Timothy Lesaca, MD | Physician
    • Why medicine ignores its Cassandras: a case study in health disparities

      Ronald L. Lindsay, MD | Conditions
    • A celebrity patient and the core of patient confidentiality

      Francisco M. Torres, MD | Physician
    • The sensing gap: Why medical AI misses critical diagnoses

      John C. Ferguson, MD | Conditions

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

View 11 Comments >

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • The Blanket Sign: Recognizing difficult patient encounters in the ER

      George Issa, MD | Physician
    • How board certification fuels the physician shortage crisis

      Brian Hudes, MD | Physician
    • The future of U.S. medicine: 10 health care trends in 2026

      Richard E. Anderson, MD & The Doctors Company | Physician
    • The passion vine: a lesson on restraint in medicine and life

      Rao M. Uppu, PhD | Conditions
    • The Platinum Rule in health care: Moving beyond the Golden Rule

      Harvey Max Chochinov, MD, PhD | Conditions
    • American health care policy reform: Why we need a bipartisan commission

      Steve Cohen, JD | Policy
  • Past 6 Months

    • Missed diagnosis visceral leishmaniasis: a tragedy of note bloat

      Arthur Lazarus, MD, MBA | Conditions
    • From Singapore to Canada: a blueprint for primary care transformation

      Ivy Oandasan, MD | Policy
    • The American Board of Internal Medicine maintenance of certification lawsuit: What physicians need to know

      Brian Hudes, MD | Physician
    • Sabbaticals provide a critical lifeline for sustainable medical careers [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why Medicare must cover atrial fibrillation screening to prevent strokes

      Radhesh K. Gupta | Conditions
    • Why medical school DEI mission statements matter for future physicians

      Aditi Mahajan, MEd, Laura Malmut, MD, MEd, Jared Stowers, MD, and Khaleel Atkinson | Education
  • Recent Posts

    • How to handle clinical disagreement with patients

      Muhamad Aly Rifai, MD | Physician
    • The economic shift from fee-for-service to direct primary care

      Dana Y. Lujan, MBA | Policy
    • The quiet paradox of physician mental health and medication

      Timothy Lesaca, MD | Physician
    • Why medicine ignores its Cassandras: a case study in health disparities

      Ronald L. Lindsay, MD | Conditions
    • A celebrity patient and the core of patient confidentiality

      Francisco M. Torres, MD | Physician
    • The sensing gap: Why medical AI misses critical diagnoses

      John C. Ferguson, MD | Conditions

MedPage Today Professional

An Everyday Health Property Medpage Today

Copyright © 2026 KevinMD.com | Powered by Astra WordPress Theme

  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

How pay for performance leads to overdiagnosis and overtreatment
11 comments

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...