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How Pay for Performance Impacts the Patients,, Providers, Practitioners and Hospitals

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How does Pay-for-Performance impact the patients, providers, practitioners and hospitals in regards to overall managed care and quality? Are there incentives, sks, or common components found? Incorporate two examples from real life.

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Solution Summary

How performance impacts the patients is determined. Pay-for-performance is examined.

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Pay-for-Performance in any profession has the same general disadvantages, it's in the details of such disadvantages which pertain to specific professions. In general, pay-for-performance's efficacy and downfall highly depends on what "performance" is defined by.

If performance is, say, number of patients seen per hour, then health care professionals are effectively placed on a wage-incentive system. Wage incentive is a method of increasing productivity and decreases employee turnover by tying pay with performance. Typically this translates into setting clear-defined goals for each employee, or a group of employee to achieve and the reward is a larger wage/bonus. For example, if the diagnostic imaging department can handle 500 cases per month, each employee gets an extra $100 to their monthly wage. The same can be applied to individuals. This may not be as ideal in situations where differential opportunity arises, for example in diagnostic imaging where the number of patients seen is entirely dependent on whether patients come in or doctors order imaging studies. The ...

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