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Pay for performance leads to modest quality improvements

Physician Practice Advisor, January 31, 2007

A Center for Medicare & Medicaid Services (CMS) pay-for-performance pilot project that rewards hospitals based on quality measures contributed to modest improvements in quality of care at participating hospitals, according to a study in the New England Journal of Medicine.

The study compared data on 14 measures of quality care for 207 facilities participating in the pay-for-performance demonstration project and 406 hospitals that voluntarily reported information with no financial incentive.

The study found that hospitals in the pay-for-performance program had greater improvement overall in all combined measures of quality. Researchers found that hospitals involved in the pay-for-performance program had a 2.6% improvement in treatment for heart attack patients and a 3.4% improvement in care for pneumonia patients compared with hospitals not in the program.

For more information about the New England Journal of Medicine study, click here.

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