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Payment Aligned with Quality Quality-based purchasing, also known as pay-for-performance, is the use of payment methods and other incentives to encourage quality improvement and patient focused, high value care. There are many models for financial and non-financial incentives used in pay-for-performance programs or strategies. It is important to remember that pay-for-performance programs should be viewed as only one component of a broader strategy of promoting health care quality.
At least twelve States throughout the country have implemented a wide range of pay-for-performance initiatives under Medicaid. The strategies may also be of interest to SCHIP. States use both payment differentials and non-financial incentives, such as auto-enrollment and public reporting, to reward performance.
Pay-for-performance is in its early stages of development and a great deal of work still must be done to determine the best method of approaching a comprehensive program. CMS will provide technical assistance to those states that voluntarily elect to implement pay-for-performance programs. We also plan to work with states to encourage that evolving pay-for-performance programs include an evaluation component to provide evidence of the effectiveness of this methodology.
Page Last Modified: 06/03/2008 11:04:09 AM
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