Are Hospitals Preparing For Health care Pay For Performance | Mercer US

Are Hospitals Preparing For Health care Pay For Performance

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Are Hospitals Preparing for Pay For Performance
Calendar22 July 2014

Employers, keep pushing on health care pay-for-performance! That was one theory to account for the recent slowdown in health care spending growth aired at a forum held by the Altarum Institute in Washington, D.C. last week. This article in Bloomberg BusinessWeek focused on a presentation by Peter Orszag, former director of the White House Office of Management and Budget (now with Citibank) that medical providers, and hospitals in particular, are changing their ways in preparation for the end of fee-for-service reimbursement. He cited the drop in hospital readmission rates as evidence that the industry is responding to what they see as the future – reimbursement that rewards quality, not quantity – even though the incentives to provide more care are still currently in place. It’s an interesting -- and encouraging -- point of view (I’m typing with one hand as I knock on wood), even if another expert at the forum, Uwe Reinhardt, said no one really has a full explanation of the current slowdown in cost growth. FYI, the article includes links to all the presentations.

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