Featured Research

from universities, journals, and other organizations

Pay-for-Performance in Healthcare: Can You Get the Quality You Are Paying For?

Date:
February 8, 2010
Source:
Wiley - Blackwell
Summary:
Although the idea of pay-for-performance (P4P) is popular among healthcare policy makers and private insurers, the results do not necessarily translate to the patient. A new study analyzes performance reports from medical groups who worked with a large network HMO which has been compiling quality data since 1993, pre-P4P. The lead researcher said, "In the end, we failed to find evidence that a large P4P initiative either resulted in major improvement in quality or notable disruption in care."

Although the idea of pay-for-performance (P4P) is popular among healthcare policy makers and private insurers, the results do not necessarily translate to the patient.

Related Articles


A new study from the RAND Journal of Economics analyzes performance reports from medical groups who worked with a large network HMO which has been compiling quality data since 1993, pre-P4P. Lead researcher Kathleen J. Mullen says, "In the end, we failed to find evidence that a large P4P initiative either resulted in major improvement in quality or notable disruption in care."

So how did policy makers and medical providers arrive at this miscalculation? A 2003 RAND study by Elizabeth McGlynn and colleagues found that on average American patients receive only fifty-five percent of recommended care. P4P seemed to be the answer to better quality care and effective preventative medicine.

The P4P reimbursement program rewards healthcare providers with bonuses for high marks in areas of preventative medicine (e.g., blood sugar testing for diabetics, cervical and breast cancer screenings for at-risk patients). Recently the Institute of Medicine recommended that Medicare join ranks with the P4P private insurers (over 100) to offer better quality, incentive-based care. However, the research shows that, rather than encouraging providers to shift resources toward quality improvement more generally, P4P may instead only persuade providers to focus on narrow (incentivized) areas.

Although the researchers found that some incentivized measures of quality may have improved in response to P4P, they failed to find evidence of positive spillovers to other related aspects of care. This result casts doubt on the promise of P4P as a transformative mechanism for improving the general quality of the healthcare system, and suggests caution in moving ahead with P4P and in interpreting the results of future studies.


Story Source:

The above story is based on materials provided by Wiley - Blackwell. Note: Materials may be edited for content and length.


Journal Reference:

  1. Mullen et al. Can you get what you pay for? Pay-for-performance and the quality of healthcare providers. The RAND Journal of Economics, 2010; 41 (1): 64 DOI: 10.1111/j.1756-2171.2009.00090.x

Cite This Page:

Wiley - Blackwell. "Pay-for-Performance in Healthcare: Can You Get the Quality You Are Paying For?." ScienceDaily. ScienceDaily, 8 February 2010. <www.sciencedaily.com/releases/2010/02/100208145057.htm>.
Wiley - Blackwell. (2010, February 8). Pay-for-Performance in Healthcare: Can You Get the Quality You Are Paying For?. ScienceDaily. Retrieved March 29, 2015 from www.sciencedaily.com/releases/2010/02/100208145057.htm
Wiley - Blackwell. "Pay-for-Performance in Healthcare: Can You Get the Quality You Are Paying For?." ScienceDaily. www.sciencedaily.com/releases/2010/02/100208145057.htm (accessed March 29, 2015).

Share This


More From ScienceDaily



More Health & Medicine News

Sunday, March 29, 2015

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

S. Leone in New Anti-Ebola Lockdown

S. Leone in New Anti-Ebola Lockdown

AFP (Mar. 28, 2015) — Sierra Leone imposed a three-day nationwide lockdown Friday for the second time in six months in a bid to prevent a resurgence of the deadly Ebola virus. Duration: 01:17 Video provided by AFP
Powered by NewsLook.com
These Popular Antibiotics Can Cause Permanent Nerve Damage

These Popular Antibiotics Can Cause Permanent Nerve Damage

Newsy (Mar. 27, 2015) — A popular class of antibiotic can leave patients in severe pain and even result in permanent nerve damage. Video provided by Newsy
Powered by NewsLook.com
WH Plan to Fight Antibiotic-Resistant Germs

WH Plan to Fight Antibiotic-Resistant Germs

AP (Mar. 27, 2015) — The White House on Friday announced a five-year plan to fight the threat posed by antibiotic-resistant bacteria amid fears that once-treatable germs could become deadly. (March 27) Video provided by AP
Powered by NewsLook.com
House Ready to Pass Medicare Doc Bill

House Ready to Pass Medicare Doc Bill

AP (Mar. 26, 2015) — In rare bipartisan harmony, congressional leaders pushed a $214 billion bill permanently blocking physician Medicare cuts toward House passage Thursday, moving lawmakers closer to resolving a problem that has plagued them for years. (March 26) Video provided by AP
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
 
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:  

Breaking News:

Strange & Offbeat Stories

 

Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:  

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile iPhone Android Web
Follow Facebook Twitter Google+
Subscribe RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins