In recent years, the performance-based approach to contracting for medical services has been gaining popu-larity across different healthcare delivery systems, both in the US (under the name of "Pay-for-Performance",or P4P), and abroad ("Payment-by-Results", or PbR, in the UK). One common element...

In recent years, the performance-based approach to contracting for medical services has been gaining popularity across different healthcare delivery systems, both in the United States (under the name of "pay for performance") and abroad ("payment by results" in the United Kingdom). The goal of...

Our paper studies the role of the performance-based incentives in managing the effects of consolidation in healthcare markets. We consider a transition between the ``pre-merger'' market configuration where a payer manages a system with two competing hospitals and one of the two ``consolidated''...