| Rewarding physicians and hospitals with bonuses for improving the quality of patient care can dramatically improve healthcare outcomes and likely save the country billions in health costs, according to results of early pilot demonstration projects.
For one year alone, there could be 3,000 fewer avoidable deaths, 500,000 fewer days in the hospital, 6,000 fewer complications and 6,000 fewer hospital readmissions, based on projections from one so-called pay-for-performance program.
Pay-for-performance (P4P) is a trend sweeping the healthcare industry. Large incentive bonuses have been paid out to healthcare providers participating in pay-for-performance over the past three years. In one physicians program alone nearly $90 million was paid out over a two year period.
The growth of the programs has been explosive. Last year there were 112 pay-for-performance programs, up from 84 in the previous year. That growth rate is expected to continue especially in light of Medicare’s call for Congress to change its current physician reimbursement system to a P4P model rather than rubber stamping increases every year.
In response to this trend, Pay-For-Performance Reporter, a new monthly newsletter that covers the news and key developments in P4P, has been launched by The Managed Care Information Center. The new service will provide the latest information, insight, and analysis on the growing adoption of provider incentive bonuses.
For more information, visit: www.healthresourcesonline.com/managed_care/p4ppr.htm. | 
