Health policy

Making the ‘Pay’ Matter in Pay-for-Performance

Implications for Payment Strategies

Publisher: Project HOPE - The People-to-People Health Foundation, Inc.

Published: September/October 2009

Making the 'Pay' Matter in Pay-for-Performance

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Making the ‘Pay’ Matter in Pay-for-Performance By: Werner RM and Dudley RA Published In: Health Affairs, 28(5), pp. 1498-1508	Quantity

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Although pay-for-performance (P4P) is being widely adopted,little is known about how different P4P strategies affect providerpayment. These differences may be essential in motivating andmaximizing quality improvement across all providers. The authors reviewhospitals’ P4P strategies and describe differences inpayments by size of reward; payment differences between high-and low-performing providers; ability to reward improvementin the absence of high performance; and the percentage of paymentsbased on performance. Bonuses vary considerably by payment strategy,which suggests that the strategy selected should vary dependingon program goals. These findings are relevant to P4P for anytype of provider.

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Health policy

Making the ‘Pay’ Matter in Pay-for-Performance

Implications for Payment Strategies

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