Running head: P4P
1
P4P
Student’s Name
Course
Instructor’s Name
Date of Submission
P4P
2
P4P
High cost of inefficiency posts elevated critics to the US system of. Additionally, it is
attributed that the level of health services is not satisfactory (Chen & Cheng, 2016). This hiccups
has resulted to many reforms in healthcare system in approach to improve service quality at the
same time moderating operation costs, reimbursements and conflicts arising from health
providers’ compensations. Pay for Performance (P4P) has been one of the approach proven to
reduce frictions within health providers as well as improving healthcare services. The approach
mentioned above incorporates incentives given to providers and physicians based on the visible
performance (Milstein & Schreyoegg, 2016). P4P influences providers or healthcare
organizations in increasing efficiency in services and reduce associated operational cost. Many
scholars have attempted to expound on the value for P4P, however, challenges in its operational
still occurs. This paper attempts to review possible changes associated in P4P programs
designing, how it affects payment reforms of providers and their reactions towards it as well as
benefits patients get from the approach.
Challenges Associated in Designing P4P Program
Regardless of the P4P benefits such as marketing the USA healthcare system as pertained
on the quality and affordability, a couple of challenges faces designing P4P program. The major
challenge faced by P4P program designing is a definition of quality (Kyeremanteng, et. al.,
2019). Based on cost effectiveness, life expectancy is the main aspect used to measure healthcare
quality efficacy (Ryan & Werner, 2013). Providers and customers get a desire of getting a distinct
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- The Land, Universal health care
