Pay For Performance.docx - Running Head PAY FOR PERFORMANCE Pay For Performance Student Name Institutional Affiliation 1 PAY FOR PERFORMANCE 2 Quality

Pay For Performance.docx - Running Head PAY FOR PERFORMANCE...

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Running Head: PAY FOR PERFORMANCE 1 Pay For Performance Student Name Institutional Affiliation
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PAY FOR PERFORMANCE 2 Quality improvement in the healthcare sector is a vital issue that needs to be addressed in the United States. In line with improving the quality and safety of care, pay for performance program has been integrated into the healthcare system to encourage healthcare providers to improve their performance (Eijkenaar, 2011). The success of the pay for performance program can stimulate quality improvement in the healthcare system by increasing the performance of the healthcare providers. On the other end, the pay for performance allows payers to receive the value for their money in a healthcare setting. However, the success of the payment for performance program remains inconclusive. Several flaws in the program design have significantly contributed to its reduced success. Challenges of the P4P program. The measurement of quality in terms of the healthcare received remains a crucial feature in the P4P program. However, payers struggle with the decision on how to quantify or measure the degree of quality they have received to compensate the provider. There is a lack in terms of measuring the performance of the healthcare provider which leaves the payer with a decision on whether to base the performance of the healthcare provider on the healthcare processes or the overall outcome (Eijkenaar, 2011). The P4P may also fail to fulfil the demands of all the health providers. The P4P program promotes a financial reward mechanism as a form of compensating a work done well. However,
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