Study: Only 11% of Hospital, Physician Pay Tied to Performance

Out of all the healthcare dollars paid to hospitals and physicians from commercial payors, only 11 percent are tied to providers' performance or how well they deliver care and reduce waste, according to a report from the Catalyst for Payment Reform.

The findings are part of CPR's first annual National Scorecard on Payment Reform. The remaining 89 percent of healthcare payments are represented by traditional fee-for-service, bundled payments, capitation and partial capitated payments.

Within the 11 percent of value-based healthcare payments, roughly 43 percent of those give hospitals and physicians financial incentives by offering a potential bonus or supplement to promote higher quality care. The other 57 percent of value-based payments put hospitals and physicians at financial risk if they do not meet certain quality and cost goals.

The scorecard aligns with recent recommendations from the National Commission on Physician Payment Reform, which recommended that FFS payments be eliminated within the next decade in favor of value- and quality-based payments.

More Articles on Healthcare Payment:

How Bundled Payments in Orthopedics Can Help Build the Foundation for a Center of Excellence
Is Hospital Consolidation Exacerbating Higher Healthcare Prices?
3 Risks for Hospitals Avoiding New Payment Models

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