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Table 3 Collapsed variables to form a conceptual variable ‘Risk’

From: A reporting framework for describing and a typology for categorizing and analyzing the designs of health care pay for performance schemes

(Risk) Collapsed variables Categories of new variable
Low risk High risk
Performance measure Absolute: incentive is paid for quality improvement not dependent on other providers e.g. incentive paid per patient immunized Relative: incentive is paid for attaining a specific rank relative to other providers e.g. incentives paid to clinicians or hospitals in top 2 performing quartiles
Domain of performance measured Within clinicians control: incentive payments are based on process and structural outcomes e.g. number of children immunized, routine measurement of blood pressure of patients every month Not within clinicians control: payment of incentives to health providers for health outcomes e.g. reduction in blood pressure of patients or reduction in mortality rates from a specific disease
Time lag Short time lag: Payment of incentives immediately after measurement of performance) or four months or less. Long time lag: Payment of incentives more than 4 months after measurement of performance