• Daniel A Vardy, Refael Kayam, and Eliezer Kitai.
• Leumit Health Fund Central Management, Tel Aviv, Israel. dvardy@bgu.ac.il
• Harefuah. 2008 Dec 1; 147 (12): 999-1003, 1027.

AbstractPhysicians are the backbone of every medical system. Physician function and behavior have a major impact on the function and outcomes of medical systems. Physician behavior is influenced by sets of incentives that are an inherent part of the medical system. Incentives may be divided into three groups: 1) moral incentives, i.e. professionalism, empathy, sense of mission; 2) social incentives, i.e. reputation, laws, administrative restrictions and work environment; 3) financial incentives, i.e. payments, salaries and bonuses. Physician behavior is influenced by a combination of all three types of incentives and not by a single incentive. The material incentive has more influence on recruitment while the social incentive has a stronger influence on retainment and attrition reduction. This article discusses the modern physician's environment in view of incentive sets and its impact on the medical system.

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