Despite the increasing momentum of pay-for-performance programs, a new report shows that only about 20% of hospitals participate in them. The report, by Mathematica Policy Research Inc. for the Centers for Medicare and Medicaid Services, showed that large hospitals accredited by the Joint Commission on Accreditation of Healthcare Organizations were most likely to have participated in pay-for-performance programs. About 30% of these hospitals, compared with 6% of small, non-JCAHO-accredited hospitals and 16% of medium, JCAHO-accredited hospitals, participated in at least one pay-for-performance program in summer 2005.
Of hospital executives interviewed for the report, nearly 40% whose hospitals engaged in pay for performance said financial benefits were the most important reason they participated, while 20% cited quality improvement as most important. Hospital officials overwhelmingly support pay for performance--93% said they favor a future CMS pay-for-performance initiative. The report cautioned, however, that selecting the right measures will be a critical part of CMS success in the pay-for-performance arena.
