Developing an Effective Pay-for-Performance Program
By Rachel Ryan and John J. D'Andrea
Editor's Note: This article was originally published in the Advisory Board Company’s September 2013 issue of the General Counsel Agenda.
In this era of health care reform and accountable care, many hospitals are seeking opportunities to align physician interests with hospital programmatic, quality of care, and patient satisfaction initiatives. A well-crafted pay-for-performance (P4P) program can provide a hospital with a powerful tool to help achieve this alignment. Simply speaking, a P4P program is an incentive-based payment model designed to align the goals of a physician and hospital in a way that improves health outcomes and/or reduces costs to patients.
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