Reimbursement and Pay-for-Performance

Over the years there has been a pervasive issue in health care because of the Pay-for-Performance (P4P) Programs. Pay-for-performance is defined as a plan of reimbursement that connects compensation to quality and effectiveness as a motivation to develop the health care quality as well as making a decrease in costs. Hospitals and providers are being encouraged by government agencies and individual health plans to encourage excellence standards. Pay-for-performance methods could cause consequences such as reduction admission to care, add differences care, and weaknesses to improve. There could be an impact of the health care quality and efficiency by providers getting financial rewards if they show better care for patients as well as showing quality of performance. P4P could affect the providers and customers by the measured performance, payment policy, and the involvement implementation matters. The P4P effects that will be seen in the future of health care is that the population will see that pay-for-performance will expand, especially the Affordable Care Act. Pay-for-Performance-defined “A reimbursement plan that links payment to quality and efficiency as an incentive to improve the quality of health care and to reduce costs” (Shi & Singh, 2012). Pay-for-performance is being turned to by payers and those who make policies. The P4P initiatives objective is to reimbursement to excellence and effectiveness to increase health care quality and to decrease costs. Agencies of the government are starting programs for providers to be encouraged to encounter excellent values. When there is improvement in care and effective performance by providers, the providers may see financial rewards. It was expected that hospitals would respond to P4P incentives, but there is little evidence that this has happened.
The Affect of Pay-for-Performance on Reimbursements The objective of the pay-for-performance is to improve the quality of care from incentives for