Pay-for-Performance or Pay for Value?

Pay for performance: at last or alas?

hat a lovely phrase … pay-for-performance. For those who toil harder, work smarter, go the extra mile, satisfy customers, follow the rules, comply with regulations—the surest incentive of all—more money on payday. The underlying principle of pay-for-performance compensation, now the rage in health care, is the creation of financial incentives that reward quality-improving, cost-saving, and more...

Pay for performance.

Pay-for-Performance Initiatives

BACKGROUND: Improving the quality of care provided to beneficiaries while reining in costs, is a key goal for Medicare programs. The emerging payfor-performance (P4P) movement is a reimbursement strategy that provides incentives to improve the overall quality care provided to patients, which can lead to improved clinical outcomes and reduced health care utilization and costs. OBJECTIVE: To revi...

Evaluating the fair market value of pay for performance.

When assessing a pay-for-performance arrangement, the following factors should be considered: Existence and/or size of minimum savings threshold before savings are allocated. Savings allocation percentage available to physicians. Benchmarks used to measure quality against past performance and/or medical evidence. Ways in which quality outcomes are measured and paid for. Per member per month pay...

Pay For Performance and Beyond

In this lecture, I will talk about my work on incentive contracts, especially incentives related to moral hazard. I will provide a narrative of my intellectual journey from models narrowly focused on pay for performance to models that see the scope of the incentive problem in much broader terms featuring multitasking employees and rms making extensive use of non nancial instruments in designing...