Finance

Pay-for-performance model produces quality improvements in hospitals

Published in Hospital Business Week, December 18th, 2005

Pay-for-performance can increase clinical quality and save lives, according to the first year of official data from a national project involving more than 260 hospitals.

The Centers for Medicare and Medicaid Services (CMS) will pay $8.85 million in incentives to the top-performing hospitals in the project, which is managed by Premier, Inc.

Data from the first year of CMS/Premier Hospital Quality Incentive Demonstration (HQID), validated by CMS and reported publicly today, demonstrate a significant improvement in the quality of care across five clinical focus areas as measured by 33 nationally standardized and widely accepted quality indicators. The...

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Source: Hospital Business Week (2005-12-18)

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