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June 29, 2005
Pay for Performance Could Fix Some Meidcare Problems
Culling a lesson from Economics 101, the federal government may be on to something -- paying someone based on their performance might actually work! Medicare pilot programs have found that pay-for-performance plans can lead to increased quality, and thereby cost-savings in hospitals. Supported by many in Congress, various bills to expand current pay-for-performance pilots are expected to be introduced.
Posted by WorkerBee at June 29, 2005 11:13 AM
Comments
There is little debate that evidence based medicine and pay for performance can improve outcomes and lower cost.
A challenge the article did not address is severity adjustment, the overall health of the paitent relative to another being treated for the same disease/illness. However, this should not be given license to delay implementation of pay for performance.
However, pay for performance is not a panacea. In fact, I seriously question whether it can offset the rate of inflation increases (often 3-4 times the CPI published rate).
Therefore, a parrallel initiative advancing consumer choice is essential. The only proven means of reducing or slowing health care cost is to cut utilization and with an aging population, living longer the arithmetic adds up to explosive cost increases.
By involving ALL US residents in the management and payment for healthcare (and equally important; wellness and prevention) we address the greatrest perverse incentive in our current healthcare system, namely the provider delivers teh care, the patient recieves the care but somebody else pays for it.
Posted by: Bill L at June 29, 2005 01:33 PM