Pay-for-performance, or value-based purchasing to
properly utilize the Center for Medicare and Medicaid Services definition, is a
highly touted but relatively new reimbursement methodology that rewards
providers more for doing the right things. The hospitals have three years of
payout experience under the Premier project, and the physicians have just
received their second distribution. The post-acute-care sector is currently
studying a pilot intake assessment tool to measure patients who move from acute
care to home health, SNF, LTAC and rehab settings. The short answer
is: it’s too soon to tell and the dollars on the table are too small to
really measure. The plethora of quality indicators and scoring systems has been
well documented. Providers can be paid more for doing the “right things” under
these pilot P4P programs. However, they stand to lose a good deal more if they
don’t focus on the “never events” that will deny payment for hospital-acquired
complications, infections and the like that should “never” occur. The federal
and state payers, along with a host of high-profile managed care payers have
all signed on to this patient-centered safety focus. The corollary to the short
answer is: given the dwindling margins, providers have to find ways to do P4P
for additional revenue and avoid “never events” with non-payments for the
patient’s sake.