Pay-for-performance programs becoming more established

A new study has concluded that slowly but surely, pay-for-performance programs are becoming more established as part of the healthcare business.

The study, the fourth annual survey on P4P by MedVantage and the Leapfrog Group, concluded that physicians and hospitals are both becoming more satisfied with such programs. Meanwhile, the programs seem to be having more of an impact on clinical quality and cost control than they had in the past.

Among the key results of the survey was that 56 percent of health plans believed that clinical quality had improved in 2008 among doctors participating in P4P programs. This compares with only 37 percent of plans that saw such improvement in 2006. Also, 25 percent of plans said P4P programs lowered physician costs in 2008, compared with just 15 percent in 2006.

Some of the improvement seen by health plans may be taking place because providers are investing more in meeting P4P goals. For example, 39 percent of plans said investment in health IT rose among participating physicians, compared with 14 percent two years before.

To learn more about the survey:
- read this Modern Healthcare piece (reg. req.)

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