Reimbursement and Pay-for-Performance Essay

1474 Words Aug 4th, 2013 6 Pages
Over the years there has been a pervasive issue in health care because of the Pay-for-Performance (P4P) Programs. Pay-for-performance is defined as a plan of reimbursement that connects compensation to quality and effectiveness as a motivation to develop the health care quality as well as making a decrease in costs. Hospitals and providers are being encouraged by government agencies and individual health plans to encourage excellence standards. Pay-for-performance methods could cause consequences such as reduction admission to care, add differences care, and weaknesses to improve. There could be an impact of the health care quality and efficiency by providers getting financial rewards if they show better care for patients as well as …show more content…
It should reflect the current incentives that would strengthen or put off the services that are delivered. Some health care treatments and procedures compensated more liberally than other services. P4P can be said as a program to make right some incentives that are misrepresented that many occur in the reimbursement delivery. Some pay-for-performance programs are trying to reassure readjustment of providers’ priorities to prevention. There are some tests, such as screening, that have been under reimbursed to providers. This can have an emotion impact the quality of care, but there is much to learn by the payers on how to get the quality of care effectively. The payers face some challenges. They have to deal with patients who are severely ill or patient’s behaviors, and still give high-quality care. Pay-for-performance could take away some distortions that come about by the primary arrangement of the existing imbursement structure. This could assist in changing health care delivery on the serious aspects of the residents’ health.
Health Care System Cost Reductions Impacts the Quality and Efficiency Cost reduction could impact the quality and efficiency of health care by using information technology (IT). It was a federal policy initiative to increase the outcome of patient’s health (Jacobs, 2012). It was for hospitals to increase the use of technology to assist to manage expenses. It ended up improving the…

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