California MD groups get $65M in P4P bonuses

It looks like some California medical groups and IPAs are profiting from their participation in pay-for-performance programs--but not that much. According to the Integrated Healthcare Association, health plans paid out $65 million in P4P bonuses to medical groups in 2007, up $10 million from the previous year. The bonuses, which were paid out during the third and fourth quarters of 2007, were based on 2006 performance. The program included 235 medical groups representing 40,000 physicians and caring for 12 million health plan enrollees.

While these numbers sound great, the truth is that the bonuses averaged only about 2 percent of annual reimbursements to the participating groups, not enough to make a huge impact on their practice. However, some groups' bonuses were as much as 5 percent of annual reimbursement.

To learn more about the IHA's P4P program:
- read this Sacramento Business Journal article [1]

Related Articles:
MI groups make P4P dollars through IT use. Report [2]
Pay for performance becoming business as usual. Report [3]
CMS program would base hospital pay on performance. Report [4]
Exclusive: How to make P4P work. Interview [5]