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Related Experiment Videos

Pay for performance: an excellent idea that simply needs implementation.

Norbert Goldfield1, Richard Burford, Richard Averill

  • 13M Health Information Systems, Wallingford, CT 06492, USA. nigoldfield@mmm.com

Quality Management in Health Care
|March 3, 2005
PubMed
Summary
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Pay for performance requires a tailored approach, not a one-size-fits-all model. Measuring healthcare value through a quality/cost score, with economic incentives, is key for provider focus and improved outcomes.

Area of Science:

  • Health Economics
  • Healthcare Management
  • Quality Improvement

Background:

  • Current pay for performance models often lack customization.
  • Measuring healthcare value requires a nuanced approach beyond simple metrics.

Purpose of the Study:

  • To advocate for a flexible pay for performance strategy.
  • To propose a framework for measuring and incentivizing healthcare value.

Main Methods:

  • Defining healthcare value as a "value" (quality/cost) score.
  • Decomposing the value score into component quality and cost metrics.
  • Highlighting the need for sufficient economic incentives.

Main Results:

  • A single "value" score, decomposed into quality and cost, effectively measures care variation.

Related Experiment Videos

  • Existing tools can enhance healthcare value.
  • Tailored economic incentives are crucial for provider engagement.

    • Conclusions:

    • Pay for performance must be adaptable, not uniform.
    • Agreement on an overall pay for performance strategy is needed.
    • A toolbox of validated tools empowers payers, providers, and consumers to create effective incentives.