Pay for performance

The payer with a PFP program should notify the patients affected, provide related self-care information, and reinforce patient responsibilities in achieving the desired health outcomes.

Given that individual incentive plans meet several of the ideal motivational conditions prescribed by expectancy and goal-setting theories, it is not surprising that related empirical studies tend to focus on individual rather than merit or group incentive plans.

That means that tying compensation to performance can be a strategic human resource management strategy. However, a recent study by Kahn and Sherer explored the impact of managerial bonus plans on the performance of managers in the year following a bonus award.

pay for performance healthcare articles

These programs also enable employees to see a clear connection between the work they do every day and the success of the company as a whole. This is especially true when merit plans are considered in the context of more complex managerial and professional jobs.

CMS uses the higher of the two scores to determine financial awards. In summary, the role that pay for performance plans can play in an organization's ability to attract and retain the best performers can be conceived in terms of an inducements-contributions exchange between employee and employer.

pay for performance model key components

Other professional societies are actively engaged in influencing the design of pay-for-performance programs and monitoring their implementation.

Mullen, Kathleen J. Use of outcome measures is particularly controversial in pay-for-performance because outcomes are often affected by social and clinical factors unrelated to the treatment provided and beyond the provider's control. At the end of the 42 month period, the reduction in mortality for the 3 conditions covered by the program at the participating pay-for-performance hospital was no longer significant; however, there was a significantly larger reduction in mortality at participating hospitals for the 5 conditions not covered or incentivized by the program.

This premise is supported by a recent study by Yale researchers that found similar mortality and readmission rates between safety-net and non-safety-net hospitals.

pay for performance articles

The First Evaluation Report to Congress in showed that the model rewarded high quality, efficient provision of health care, but the lack of up-front payment for the investment in new systems of case management "have made for an uncertain future with respect for any payments under the demonstration.

Thanks to the groundless cheerleading by health-policy heavyweights, bonus-and-penalty programs spread like crabgrass through the American health care system.

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Pay for performance: a dangerous health policy fad that won't die