Performance-based Payment and Sustainability

Researchers have identified a series of obstacles and strategies for states and payers to consider when implementing pay-for-performance systems.

Potential Obstacles

  • Lack of valid and practical quality measures
  • Linking incentives to specific outcomes
  • Unwillingness or inability of providers to collect data
  • Validity of the data used to calculate the incentive measures

Strategies for Long-term Success and Sustainability

  • Develop measures that are valid, practical to implement, and have multiple provider buy-in.
  • Make the amount of the incentive meaningful to providers.
  • Ensure the data is easily obtainable.
  • Minimize the data reporting burden.
  • Recognize that one size does not fit all and customize the program to the way providers do business.
  • Provide training to help programs implement changes to improve their processes and understand how to use data effectively in their organizations.

Additional Information