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Pay-for-performance system shows promise with improvements

Quality Improvement Monitor, October 20, 2005

Physicians initially having the lowest quality ratings showed the most improvement under a pay-for-performance system, according to a study in the October 12 Journal of the American Medical Association.

Physicians who were paid bonuses for meeting certain quality standards had a higher and faster rate of improvement in clinical quality, according to the study. Physicians were measured on the clinical quality of hemoglobin-A testing, cervical cancer screenings, and mammographies between October 2001 and April 2004.

Physicians who were part of a bonus incentive program improved 5.3% in cervical cancer screenings and 1.9% in mammographies, according to the study. Physicians who were part of a pay-for-performance system and those who were not both showed a 2.1% increase in hemoglobin-A testing.

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