Pittsburgh's West Penn Allegheny, UPMC Shift From Traditional Payment Models

Pittsburgh-based West Penn Allegheny Health System and University of Pittsburgh Medical Center are moving away from their traditional volume-based payment model towards a pay-for-performance one, according to a Pittsburgh Tribune-Review.

In the next year, UPMC will test a payment model under which primary care physicians can receive a bonus of up to 20 percent if they meet certain quality measures. The pilot started in July and may expand if it affects patient outcomes.

West Penn Allegheny is not expected to make a move to this model until it is acquired by payor Highmark, also based in Pittsburgh. The system already pays physicians based on productivity, research and teaching activities. It wants to expand that model and add more layers, such as patient outcomes and quality.

Related Articles on Pay-For-Performance Payment Models:

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