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Big demand for pay-for-performance knowledge
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Given the numerous data obstacles and costs to payor P4P programs, I am astounded that physicians have been so slow to engage hospitals in Pay-for-Quality and Gainsharing programs.
Expenses for hospitals exponentially dwarf those of their physician practices, and physicians drive over 60-80% of hospital costs through Length-of-Stay, diagnostic tests, procedures, and procedure-related complications.
A number of different models have been successfully (and legally implemented), and have improved quality while significantly compensating the involved physicians for their improved outcomes, product cost savings, and non-clinical consultation time: workflow consulting, new product evaluation and process implementation, team guidance, and benchmarking and tracking quality indicators. The OIG has formally approved a string of “traditional” Gainsharing programs, the latest one in August with an orthopedics program.
Very few hospitals will seek out physicians to offer to share savings with them. As we see today, the trend is that hospitals will increasingly require physician non-patient care time for data measurement, capture and reporting, and then keep P4P hospital compensation totally for themselves.
It is up to hospitals’ medical staffs to begin to demand that they are compensated for the significant quality improvements they make.
Gainsharing is a means of achieving this, while ensuring demonstrated compliance with Federal laws and rules.
mmaglothin@cox.net





