Provider payment incentives: Evidence from the U.S. hospice industry

Provider payment incentives: Evidence from the U.S. hospice industry 
ScienceDirect - Journal of Public Economics; by Norma B. Coe and David A. Rosenkranz; online ahead of print for August 2025 (retrieved from the internet 7/1/25) 
Highlights

• Capitation may reduce productive inefficiency but raise allocative inefficiency.
• In response, Medicare caps average annual revenue to reduce hospice spending.
• The cap may be undercut by hospices that churn patients.
• Impending cap liabilities cause hospices to raise enrollment and discharge rates.
• But churning is likely limited by non-pecuniary features of the hospice benefit.