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P4P Pay for Performance MHA 628Ashford University Professor Tanya ScherrFebruary 10, 2020Pay for Performance1
P4P Introduction Patient safety has become a central focus of healthcare since the Obama Administration. Healthcare facilities payments from Medicaid/Medicare are partially obtained through bench-markers, one of them being patient safety and readmission rates. As stated by Kongstvedt, P.R. (2012), “. Hospital performance will be evaluated based on the 30-day readmission measures for heart attack, heart failure, and pneumonia that are currently part of the Medicare pay-for-reporting program.” The pay for performance (P4P) strategy is used to increase both short-term and long-term performance by physicians, which then, in turn, would help to increase patient safety awareness, decrease medical mishaps, and enhance the value of patient care. “Pay for Performance in healthcare (P4P), also known as value-based payment, comprises payment models that attach financial incentives/disincentives to provider performance. P4P is part of the overall national strategy to transition healthcare to value-based medicine” (NEJM Catalyst, 2020). Thus, this system is seen as a catalyst that can enact positive change within the healthcare landscape.Challenges in Designing Pay-for-Performance ProgramsSome of the challenges that may be met when designing a pay-for-performance plan arePotential decrease in intrinsic drives: -Financial inducements centered on productivity and fiscal results may hurt physician contentment (Eijkenaar, F., 2013).