Pay for performance and quality

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Pay-for-Performance and Quality

Pay-for-Performance (P4P) is addressed. The following is from your textbook:

Efforts in this decade by business, government, and health plans to control costs and to improve quality focus on the strategy of more richly rewarding physicians who deliver care at a higher level of quality. Pay-for-performance strategies have been a continuous extension of the concept of incentive pay for physicians who, on average, perform below the expectations of payers and society at large. More recently, the industry has begun to sharply focus on true physician outcomes as opposed to process measures for improved reimbursement. Measures such as hospitalization rates and the percentage of patients with complete preventive medicine screens have found their way into a variety of P4P schemas. An attendant concept to P4P is the "high-performance network," which has been advanced by a number of insurers and benefit management consultants. The proponents of these high-performance networks suggest that networks created by selecting only higher quality doctors should intrinsically be cheaper and better.

Do you think that P4P will improve health care in the U.S.? Do you think P4P will reduce health care costs in the U.S.? Why? There has been controversy about treating health care as a "business" but do you think business principles are beneficial in the health care industry? Why?

Reference no: EM132299828

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