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Survey finds pay-for-performance gaining traction in healthcare

Healthcare Security Weekly, May 5, 2006

Healthcare pay-for-performance (PFP) programs are becoming increasingly popular in the industry, but a lack of research evaluating their effectiveness is impeding faster growth, according to a recent survey of healthcare executives.

The survey of approximately 150 managers and executives from the healthcare industry was conducted by the Stamford, CT-based healthcare information firm Thomson Medstat. The findings included:

· 42% said their organizations are currently involved in PFP activities, and 44% said they expect to participate in PFP activities in 2006.

· 85% said PFP is, or could be, very valuable to their organization.

· Respondents who are involved with PFP initiatives said the top benefits of these efforts are improved patient health and reduced medical costs.

Among those organizations not planning PFP activities, many pointed out the lack of robust evaluations of these programs by impartial researchers, according to a release from Thomson Medstat.

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