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MedPAC director: Hospitals ready for pay for performance

Quality Improvement Monitor, July 28, 2005

The hospital setting is ready for a pay-for-performance reimbursement system, but physician practices need more time before a program begins there, the executive director of the Medicare Payment Advisory Commission (MedPAC) told the Senate Finance Committee on July 27.

Mark E. Miller, the MedPAC executive director, told the committee that Medicare has the infrastructure necessary to institute a pay-for-performance system in hospitals, managed care plans, home health agencies, and dialysis facilities, according to BNA Health Care Daily Report. Pay for performance would encourage high-quality care for those facilities, he said.

But a lack of data on quality measures may set back incentive-based reimbursement for physician practices for two or three years, BNA reported.

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