Question

Incentives are often controversial folks. Despite the controversy, the government has adopted P4P (Pay 4 Performance) incentives to all healthcare providers. In follow-up what is the problem with P4P and other incentive programs and given these problems, why do they continue to exist?

Answer 1

Pay for performance is also called as value- based payments. Here the provider are paid for the quality of service they have provided.Incentives are based on the quality care.They are even at the edge for disincentive if the quality of care is poor or not to the level expected.

The major problem here and its continuity in existence are

• the hospital reimbursements affected through Medicare
• The hospital's are penalized for sub par performance
• Payers lower FFS payments
• Hospital value based purchasing program,Hospital Readmission Reduction program, Hospital Acquired Condition Reduction Program directly affects tge income generation
• Poor patients cannot pay for their medication, transport and treatments and utmost struggle to pay to their providers.
• It decreases job satisfaction
• Costly administrativ esystem exist
• It is difficult to accurately assess the quality of care when patients are treated by multiple providers.
• The hospital and health care providers should work together with the CMS to achieve success in this program.