Apr 13, 2009
Pay-for-Performance and the Quality of Healthcare Providers
Published in: The RAND Journal of Economics, v. 41, no. 1, Spring 2010, p. 64–91
Posted on RAND.org on January 01, 2010
Despite the popularity of pay-for-performance (P4P) among health policymakers and private insurers as a tool for improving quality of care, there is little empirical basis for its effectiveness. The authors use data from published performance reports of physician medical groups contracting with a large network HMO to compare clinical quality before and after the implementation of P4P, relative to a control group. They consider the effect of P4P on both rewarded and unrewarded dimensions of quality. In the end, they fail to find evidence that a large P4P initiative either resulted in major improvement in quality or notable disruption in care.