tci Medicare Compliance & Reimbursement - 2006 Issue 1

HOSPITALS: CMS Tooting Its P4P Horn

Bonuses paid out for facilities that improve care quality. The Centers for Medicare and Medicaid Services' landmark pay-for-performance demonstration, which it kicked off in 2003, is showing significant quality-of-care improvements in participating hospitals. And for the first time, the agency is rewarding these hospitals with big cash bonuses."We are seeing that pay-for-performance works," CMS administrator Mark McClellan said in a statement. More than 260 hospitals voluntarily participate in the Premier Hospital Quality Incentive demonstration, which offers bonuses for hospitals that show improvements in the quality of their care in five clinical areas.But participating in the project...

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