IOM recommends P4P for Medicare

The Institute of Medicine (IOM) recommends that the federal government focus less on quantity and more on quality when it comes to treating Medicare patients. The current system reimburses doctors a set amount for performing particular medical services. The IOM finds that this system doesn't do anything to encourage doctors to administer high-quality care. Instead, the report recommends instituting a pay-for-performance system, and it even suggests how to pay for such a program. The IOM says that the federal government should cut Medicare reimbursement across the board and use the extra money to reward high-performing doctors.

For more on the IOM's recommendation:
- read the report from the AP

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