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Tuesday, March 10, 2009

No performance for peanuts

This time, we're actually talking about doctors, not elephants. A new RAND study (published in Health Affairs) is the latest to assess the impact of pay-for-performance. Participating practices reported increased physician-level performance feedback and accountability, speeded up information technology adoption, and sharpened organizational focus and support for improvement.

BUT, they didn't see the P4P programs having any impact on quality. As researchers told Reuters, that might be because the performance bonuses were too small--about $1,500 to $2,000 per physician annually. "They suggested the incentives needed to be two to five times higher in order to achieve quality improvements."

Sounds like the payers need to find another zero if they want to get everyone's attention. Or just wait for the economic crisis/deflation to make the existing incentives sound relatively appealing.

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