Pay for performance may not work well for all hospitals

Concerns have been raised about Medicare’s plan to implement pay-for-performance.

A study in Public Library of Science (PLoS) Medicine finds that pay for performance has the potential to worsen the situation of hospitals that have long faced problems in meeting performance goals and may not have the resources needed to meet these goals.

The authors suggest that US policy makers may need to modify how they measure performance improvement as the current model gives hospitals that start from a low baseline less credit for improvements than those that start from a high baseline.

(Sources: The Advisory Board Daily Briefing,, June 30, 2010; PLoS Medicine,, June, 2010)