Incentives for Quality Care...Is This the Future?
In the few years since it appeared in health care, pay-for-performance (P4P) has become the industry's latest rage; a hoped-for solution to lapsing quality that might help curb skyrocketing costs. P4P programs offer bonuses to hospitals that score highly on measures for clinical quality. And as such, they create financial incentives for hospitals to provide better care.
More than 50 percent of private HMOs now use P4P, and those numbers are growing. The Centers for Medicare and Medicaid Services (CMS) have also gotten into the game. Since 2005, CMS has run a P4P demonstration project involving more than 250 hospitals, which collectively improved quality from 2.6 to 4.1%, according to a recent analysis in the New England Journal of Medicine. Charlotte Yeh, MD, the regional CMS Administrator for New England, says a federal P4P rollout covering all US hospitals will likely begin in 2009. Read More...
Meeting the Challenge
In the midst of the academic and policy debates, P4P is a growing reality for hospitals around the country. “Our expectation is that this will become a bigger and bigger piece of what we have to do to get paid,” says Sebba of Anna Jaques Hospital, which has an upcoming P4P arrangement with a private payer worth millions. Sebba believes P4P can improve quality, but he emphasizes there's still a lot to learn about how to make it effective. Meeting four-hour windows for antibiotics in pneumonia cases, for instance, requires doctors, nurses, and pharmacists to interact in new ways. “Everyone has to be aware of how important it is,” Sebba says. “And that's where it gets hard—there are an enormous number of people that have to be coordinated to make this happen.”
As an added challenge, quality monitoring requires streamlined data systems, which aren't always amenable to the action on the floor. Most physicians—particularly older, attending physicians—have grown accustomed to "free-form" note taking, whether handwritten or recorded. Electronic medical records are evolving to extract data from free-form narratives, but that's still a touch-and-go process. Read More...