Capturing incentives and avoiding penalties: The carrot and the stick

Over the past decade, health care in the United States has been a topic of intense political debate, resulting in dramatic legislative, regulatory, and economic changes. These changes have occurred due to the unsustainable rise of health care costs without accompanying improvement in measured health outcomes when compared to other economically developed countries. In an attempt to contain costs and improve the quality of health care provided, the Center for Medicare and Medicaid Services has implemented 4 distinct incentive-based programs. Data are scarce concerning whether such programs will be successful in accomplishing these goals. Each health care provider will need to weigh the costs of participation against the fines incurred by nonparticipation (up to 10% of annual Medicare payments). Knowledge of the percentage of one's practice dedicated to the care of patients in the Medicare and Medicaid programs will be helpful in arriving at a final decision.