Survey: Pay for Performance Grows in Healthcare

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Healthcare pay-for-performance programs are taking root, though the lack of impartial, objective research evaluating their effectiveness impedes faster adoption and growth, a survey of healthcare executives found.

Thomson Medstat, an Ann Arbor, MI, healthcare information business, released the results last month. Medstat is part of Thomson Corp.

Pay-for-performance programs reward physicians, hospitals and other providers that deliver efficient, effective care.

Thomson Medstat surveyed nearly 300 managers and executives from hospitals, health plans, large employers and government health agencies for their experience with such programs, and 154 participated. Results:

  • 42 percent said their organizations are now involved in pay-for-performance activities, and 44 percent expect to participate in 2006.
  • 85 percent said pay for performance is or could be valuable to their organization. This includes 41 percent who described it as very or extremely valuable.
  • Respondents involved with pay-for-performance initiatives said the top benefits are improved patient health and reduced medical costs.
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