Pay-for-performance programs are not likely to save money in the long run and may even end up raising costs, according to a recently released report from the Congressional Research Service.
Studies have indicated that pay-for-performance programs can contribute to improved quality, CRS said in the report, “Pay for Performance in Health Care.” But little evidence exists that such programs offer long-range cost-savings. Bonus payments for incentives in the program create “an additional hurdle to achieving overall cost savings,” the report stated.
In September, the Centers for Medicare & Medicaid Services announced a nursing home pay-for-performance demonstration designed to use financial incentives to promote quality, facilitate the sharing of best practices and provide information to guide national policies.
