Question

Identify the impact of Pay-for-Performance on the healthcare organization and discuss the impact of Value Based Purchasing on the organization. (600 words)

Answer 1

PAY FOR PERFORMANCE is also known as VALUE BASED PURCHASING is a payment model that offers incentives to physicians, hospitals, and other healthcare providers .
Pay for performance systems evaluate process quality and efficiency, such as measuring blood pressure, lowering blood pressure, or counseling patients to stop smoking.

This also penalizes health care providers for poor outcomes, medical errors, or increased costs.

Present pay-for-performance systems measure performance based on specified clinical measurements, such as reductions in glycohemoglobin for patients with diabetes.

Healthcare providers who are monitored by this criteria have a power to dismiss or refuse to accept patients whose outcome measures fall below the quality standard and therefore worsen the provider's assessment.