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Reimbursement Essay-Pay-For-Performance In Nursing Homes

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Pay-for-Performance in Nursing Homes
Pay for performance is a type of provider reimbursement system where the healthcare network of providers is incentivized for maintaining quality measures and standards in the treatment of their patients. Most of the times these incentives are monetary in nature. This type of payment strategy is relatively new in healthcare. This holds true even more in the case of nursing homes as compared to hospitals and health provider offices. One reason out of many, I believe is that the nursing homes are mostly state funded and have less leverage of experimentation in their operations. P4P is still in the evolving and experimental stage as claimed by the CMS (Centers for Medicare & Medicaid Services). Rigorous evaluations of the impact of pay¬-for-performance are almost nonexistent in the nursing home setting, yet they are critical for understanding the implications of this policy. It is very difficult to …show more content…

This adversely affects the results of the measures. The philosophy behind P4P is that the pay is proportional to merit and in merit is measured in quantified terms. But when it comes to healthcare it is a complex phenomenon. It is difficult to talk about the performance in numerical terms. If we assign points to every activity of a healthcare personnel like a nurse or a doctor, then we might face a situation in which the doctor or nurse making their priority as earning the points rather than what is most important for the patient. This might include cost reduction activity which is bad for the poorer nursing homes.
It is reassuring to see that the NHVBP (Nursing Home Value-Based Purchasing Demonstration) will use an experimental design having randomized assignment of nursing homes participating into treatment and control groups and has already implemented an independent

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