Health Affairs and RWJF examine pay-for-performance model in new report
Posted on October 18, 2012 | No Comments
A report recently published by Health Affairs and the Robert Wood Johnson Foundation (RWJF) centers on the “pay-for-performance” model of health care payment. Pay-for-performance is an umbrella term that encompasses payment initiatives aimed at improving the quality, efficiency, and overall value of health care. This payment model contrasts with the traditional payment for medical services, which is predominatly fee-for-service or based on the volume of care provided. Providers are traditionally paid based on the complexity of services they provide, as opposed to the quality. The pay-for-performance arrangements, on the other hand, provide financial incentives to hospitals, physicians, and other health care providers to carry out such improvements and achieve optimal outcomes for patients. The Affordable Care Act (ACA) expands the use of pay-for-performance approaches in Medicare in particular. The Health Affairs / RWJF policy brief reviews the background and current state of public and private pay-for-performance initiatives and explores options to make these programs more effective in the future.