For the study, researchers analyzed the effects of a 260-hospital pay-for-performance demonstration project carried out by CMS and Premier. The effects of the demonstration project were compared to 780 hospitals that did not participate in the demonstration project.
Results from the researchers’ analysis showed more than half of pay-for-performance hospitals initially achieved high performance scores, compared to less than one-third of control hospitals. However, the two hospital groups’ performance scores were near identical after five years. Performance improvements were the greatest among well-financed hospitals, hospitals operating in less competitive markets or hospitals that were eligible for larger bonuses. The researchers concluded pay-for-performance programs should be tailored to each hospital’s unique situation.
Read the article about hospital pay-for-performance programs.
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