Pay For Performance Essay

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The pay for performance (P4P) is a controversial , evolving and popular method of reimbursement in the healthcare arena. This is an insurance reimbursement based on providers and health care organizations meeting established goals for delivery of patient care. The P4P is a reimbursement method that allows incentive to be awarded to health care providers by healthcare managed organizations for attaining set goals for delivery health care to their patients; hence the health care organization may allocate certain a portion of the payment to providers for efficiently practicing evidence-based clinical care.
Most importantly, for a P4P program to be efficient in the health care industry, it is imperative that the reimbursement method reward providers for quality health care. In addition, it is important that the P4P program aligns physicians’ financial incentives with the best interests of patients. Although the measures of performers may vary from one program to another, most of the P4P use a combination of programs that includes: clinical quality and effectiveness, utilization and cost management, Patient satisfaction, administrative …show more content…

In addition , such a program may also reward improvement in performance over time, such as year-to-year decreases in the rate of avoidable hospital readmissions. As would be expected Pay-for-performance programs can also impose financial penalties on providers that fail to achieve specified goals or cost savings. For example, the Medicare program will penalize hospitals for readmission, or for treating patients who acquire certain preventable conditions during their hospital stay or stays, such as pressure sores or urinary tract infections associated with the use of

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