PHI has often financed the delivery of larger treatment volumes by offering higher payments to providers. Financial incentives linked to payment mechanisms exert a direct impact upon doctors’ This has contributed to a growth in the volumes of private hospital treatments in several countries where doctors have both public and private sector engagements, as in Australia and Ireland (Colombo and Tapay, 2003 and 2004b). Policy makers in many OECD countries allow differential doctors’ payments33 between public and private practice and permit dual appointments in order to keep the workforce motivated. Similarly, some countries – including Australia and Ireland – allow public hospitals to treat privately financed.
