Hierarchy of Needs

In working with STAR-SI and NIATx 200 states, we have learned that successful Process Improvement Performance Management (PIPM) systems focus on a basic hiearchy of needs. The foundation starts with the collection of data necessary to support a state PIPM system. Once the data is collected, states and providers need to address data quality because poor data quality will impact the usefulness of performance management feedback reports. These reports represent the third tier in the hiearchy of needs. Once a state has adequately address the first three levels, they are ready to consider the implementation of pay-for-performance systems which are addressed elsewhere in this toolkit.

Hierarchy of Needs for an Effective PIPM System Pyramid.  Bottom level is Data Collection, second level is Data Quality, third level is Performance Technology, and the top level is Pay for Performance.

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The concepts in this hiearchy of needs form the basis for the PIPM toolkit for states. This toolkit aims to capture lessons learned from the STAR-SI project and other NIATx initiatives. It provides guidance to states and providers by focusing on a basic hierarchy of needs associated with process improvement for performance management systems. Our PIPM model includes data collection, data quality, performance management, and pay-for-performance.