Massachusetts Medicaid Pay-for-Performance Failed to Improve Quality in First Year

Researchers found that Massachusetts' pay-for-performance program did not improve quality one year after its implementation in 2008, according to research findings published by the Agency of Healthcare Research and Quality.

For their study, researchers compared care quality data from 2004-2009 submitted by 62 hospitals in Massachusetts. They also looked at data from 3,676 hospitals in other states.

 



The researchers found no evidence that the pay-for-performance program improved the quality of care for patients with pneumonia or prevented patients from getting surgical infections. For instance, Massachusetts hospitals had similar quality outcomes as other states' hospitals for pneumonia care measures. For surgical infection prevention, Massachusetts had quality levels 12 percentage points higher in 2004 compared with other states' hospitals. However, these levels narrowed to being nearly equal to other states by 2009, after the pay-for-performance program had been in place for a year.

The researchers suggest inadequate financial incentives or overwhelming reporting requirements may have hampered the program's intended outcomes.

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