No pay for no performance

No pay for no performance

In most industries you don’t get paid for rework. Ship a defective promise or perform a service in a shoddy manner and not only won’t you get paid to fix it, you might have to pay a penalty to the customer. Not so in the hospital business. For the most part, if hospitals do something wrong they not only get paid for the original service but also make even more from the follow-on treatment. That may change soon, at least a little, if CMS Administrator Mark McClellan has his way according to Modern Healthcare:

McClellan said he wants Medicare to stop reimbursing hospitals and physicians for procedures and services resulting in so-called “never events” — serious medical errors such as wrong-site surgeries, mismatched blood infusions and preventable post-operative deaths.

It could be a start.

May 18, 2006

2 thoughts on “No pay for no performance”

  1. Paying based on merit! What a concept. It’s almost as though we should reward people for good work and not merely seniority.

    [Anyone care to insert the obvious comment about our public school system?]

    Bless this mess…

  2. Well, maybe CMS can make it work, but it seems to have met with some resistance in the commercial insurance market:

    “According to a recent WSJ/Harris poll, support for rewarding providers based on outcomes seems to be fading.”

    If Dave doesn’t mind, I back that up with pictures 🙂 here:

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