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MN reforms would pay for performance

Quality Improvement Monitor, December 2, 2004

Minnesota Gov. Tim Pawlenty on Monday proposed a sweeping healthcare reform package, including a pay-for-performance incentive for those who provide better care.

The proposal came as a result of recommendations from a special task force Pawlenty appointed last year to reform the state's healthcare system, according to the Star Tribune of Minneapolis.

The state would have to establish standards to treat patients in effective and efficient ways, something that could take months or years to work out, the Star Tribune said. Insurers would then pay higher fees to physicians who follow the standards and lower fees to those who fail to meet them.

But many are concerned about who would develop the standards, the paper said. The state said the standards would be developed in cooperation with the medical community.

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