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Medical Care Research and Review
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What's the Return? Assessing the Effect of "Pay-for-Performance" Initiatives on the Quality of Care Delivery

Stephen R. Grossbart

Catholic Healthcare Partners

This article evaluates the impact of the Centers for Medicare & Medicaid Services/Premier pay-for-performance demonstration project on performance improvement in three clinical areas in a multihospital health care system. The study compares a group of hospitals participating in this project against a control group of similar hospitals that did not participate. Although the incentives are extremely small, the findings show that participation in the pay-for-performance initiative had a significant impact on the rate and magnitude of performance improvement. The project led to marked improvement in the quality of clinical process delivery and accelerated the adoption of evidence-based practices.

Key Words: quality • clinical effectiveness • financial incentives

Medical Care Research and Review, Vol. 63, No. 1 suppl, 29S-48S (2006)
DOI: 10.1177/1077558705283643


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