Healthcare leaders: pay-for-performance most effective way to reduce healthcare costs

Healthcare Financial Management, June, 2005

Rewarding mere efficient and high-quality providers ranked first among effective ways to cut healthcare costs, according to a recent Commonwealth Fund survey of experts in U.S. healthcare practice and policy. A majority (57 percent) of respondents rated pay for performance as an extremely or very effective way to reduce healthcare costs,

When asked which method would be most effective in reducing unnecessary utilization of healthcare services, a majority (56 percent) of respondents rated highest improving disease management for patients with high-cost conditions and enhancing primary care case management. Respondents in the healthcare delivery sector were especially enthusiastic about this method, with seven of 10 (71 percent) calling it an extremely or very effective way to reduce unnecessary utilization of services.

For a summary of the survey results, go to www.cmwf.org, click on "data and surveys," and scroll down to "Health Care Costs: Assessing Health Care Experts' Views."