How Pay-For-Performance Can Backfire

October 13, 2011
47 Views

From Health Affairs by Aaron Carroll:

From Health Affairs by Aaron Carroll:

One of the ways you can have really good stats is to treat healthier people in general…. Wealthy people tend to be healthier than poorer people, in general, so focusing your practice in wealthier neighborhoods, and limiting your Medicaid exposure, may tend to improve your outcomes. Minority populations tend to be unhealthier than non-minority populations as well. Therefore, hospitals that tend to have lower numbers of black or Hispanic patients might look better, too.

It gets worse. Because the hospitals that cover more poor people and more minorities tend to cover more unhealthy people, they may spend more money as well. So it’s possible for them to get the worst of both worlds. Their quality looks worse and their costs look higher.

…. There will be a strong impulse to create straightforward metrics like this study used to grade which hospitals are doing “well” and which are “wasting money”. When they do that, and decide to reward those that come out on top, hospitals that need the resources the most may be deprived of them first.

That’s backwards, and avoidable. Disparities will worsen, not improve. You can’t say you haven’t been warned.

See Kaiser story here.

 

   

You may be interested

Can Natural Remedies Like RediCalm Decrease Stress and Anxiety?
Wellness
2 views
Wellness
2 views

Can Natural Remedies Like RediCalm Decrease Stress and Anxiety?

Ryan Kh - August 16, 2017

According to research from the National Institute of Mental Health, anxiety disorders are the most common mental illness in the…

How to Alleviate Stress Related Insomnia
Specialties
400 views
Specialties
400 views

How to Alleviate Stress Related Insomnia

JohnHenning - August 15, 2017

Do you have difficulty falling asleep or staying asleep every night? You aren't alone. According to multiple studies, including one…

4 Hormones That Play a Critical Role in Your Well being
Wellness
437 views
Wellness
437 views

4 Hormones That Play a Critical Role in Your Well being

Erica - August 15, 2017

Hormonal health and wellbeing have received plenty of attention lately, both from the medical community as well as from health-conscious…