CIN Partners Share: Discussion on Pay for Performance
January 1, 2015
In January 2015, the California Improvement Network’s partners gathered to discuss the merits of the pay for performance payment model. The concept of pay for performance, or P4P, emerged in the early 2000s to address health care quality deficits and rising costs through financial bonuses or payments to providers based on a set of performance measures. While traditional fee-for-service payment mechanisms reward volume, P4P programs provide incentives for outcomes. The Affordable Care Act expanded the use of P4P through a number of mechanisms, including the introduction of accountable care organizations, groups of providers who coordinate care for a group of patients and who are held financially accountable for quality, and often financial, outcomes.
Many health care organizations agree on P4P as a strategy to improve quality and reduce costs, even though individual programs show mixed levels of success.