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States more aggressive with pay-for-performance programs

Case Management Weekly, April 18, 2007

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The number of Medicaid pay-for-performance programs has dramatically increased, according to a study released by the Commonwealth Fund, a private foundation that finances healthcare research. The study's findings suggest states continue to move faster than the federal government to adopt such measures.

According to the survey, more than half of all U.S. states currently reward physicians for delivering high-quality care to patients in government programs for low income populations, and almost 85% of state Medicaid programs plan to have pay-for-performance measures in place within the next five years.

While the American Medical Association and the Institute of Medicine both support pay-for-performance measures, many physicians are concerned that a change from set fees to incentive payments will favor cost savings over quality.

Source: The Commonwealth Fund; California Healthline

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