The California Pay-for-Performance Programme

10 March 2010

The California pay-for-performance (P4P) programme is the largest non-governmental physician incentive programme in the US. It includes eight health plans and over 200 medical groups representing 35,000 physicians caring for 11.5 million HMO members.

While achieving success, P4P has not fully achieved its goal to create performance breakthroughs in clinical outcomes or patient experience and the programme has been challenged by small incentive payments equalling less than 2% of total compensation.

The continued existence of IHA's P4P program has helped to dispel the myth that it is impossible to measure quality in healthcare.

The California experience demonstrates that P4P is not itself the answer, but that it is an important step towards accountability, continuous quality improvement and effective payment reform in healthcare.

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