In the new agreement, IBC will reward Penn Medicine’s hospitals and physicians for improving care quality and reducing cost. Fifty percent of Penn Medicine’s potential earnings are based on its ability to reduce hospital-acquired infections and readmissions and follow evidence-based guidelines. The other half is based on Penn Medicine’s ability to manage costs through collaboration and coordination along the continuum of care.
According to IBC, more than 80 percent of the eligible health systems in the Philadelphia area have agreed to participate in this payment model. The insurer is aiming for 90 percent participation by the end of this year.
More Articles on Pay for Performance:
NYC Health and Hospitals Corporation Ties Physician Pay to Performance
8 Steps for Hospitals Developing Bundled Payment Programs
4 Resolutions for Hospital C-Suiters
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