Pay-for-performance has become popular among policy makers and private and public payers.
“Pay-for-performance” is an umbrella term for financial incentives to hospitals, physicians, and other health care providers who focus on the general happiness of their patients. Which are aimed at improving the quality, efficiency, and overall value of health care
The Affordable Care Act includes a number of provisions which are designed to encourage quality of care. The best known programs under the law that would be considered pay-for-performance are Accountable Care Organizations (ACOs), groups of providers that agree to be held accountable for the quality and cost of services they provide.Pay-for-performance arose in the early 2000s as concerns about potentially compromised quality and constraints on patients having access to providers of their choice grew from both providers and consumers. Also, serious deficiencies in the quality of US health care had been highlighted in two major reports by the Institute of Medicine, among other studies. Pay-for-performance, it was thought, was a way for payers to focus on quality with the expectation that doing so would also reduce costs.
Some have concerns that the pay-for-performance model will have negative results, and a few studies have showed mixed or short-lived results in performance scores.
While results are still mixed, a recent study did show positive effects of incentivizing based upon performance within small HER-enabled clinics.
For more reading on the issue take a look at the study abstract here.
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