Question

Describe in detail Pay for performance in health care. What are the pros and cons?

Answer 1

Pay for Performance in healthcare comprises payment arrangements which attach financial incentives to provider performance. P4P is part & parcel of the overall national policy to transition medical care to value-based medicine. Whilst it still uses the fee-for-service mechanism, it shoves providers toward value-based care as it links reimbursement to metric-driven results, & patient satisfaction, hence allying payment with quality & value.

Pros-Supporters of P4P state many benefits. P4P in medical care highlights quality over quantity of healthcare & enables healthcare payers to redirect monies to promote best clinical procedures & foster positive health results. It concentrates on transparency by utilizing metrics which are reported publicly hence giving the added incentive for establishments to safeguard & fortify their reputations & it fosters accountability and competition thru customer-informed choice.

Cons-They harm & lessen access for socioeconomically disadvantaged populaces as, in spite of risk adjustments, care providers who treat a bigger share of poor patients won’t perform as well on P4P gauges & thus are incentivized to avert treating them. Underprivileged patients struggle to pay for medicines , follow-up care & transportation & usually engage in behaviours which are detrimental to their health.