The demonstration began in 2003 and was sponsored by Medicare in partnership with Premier health alliance. In its first five years, the demonstration paid out $48 million to top performing hospitals.
Hospitals that received incentive payments raised their quality score by an average of 18.3 percentage points over 5 years. Participating hospitals that did not receive incentive payments because they did not meet benchmarks still increased their quality scores, with these hospitals increasing their average score by 18 percentage points.
An independent evaluation of the demonstration also found that quality increased “substantially” for hospitals not participating in the demonstration but that reported quality information to the public Hospital Compare website, according to the release.
Read CMS’s release on the Hospital Quality Incentive Demonstration.
Read more coverage on incentive payments of quality:
– CMS Awards $814K in Pay-for-Performance to 9 North Shore-LIJ Hospitals
– Study: Hospitals With More Poor Patients Improve With Financial Incentives
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