Pay for performance in rheumatology: will we get the carrot or the stick?

Introduction A number of developments suggest that large payers are placing increasing emphasis on value-based purchasing or pay-for-performance (P4P) programs for many medical services (see Table 1 for a glossary of terms used). This drive to tie provider compensation to objective measures of care processes and outcomes is fueled by the perception that payments are insufficiently related to value provided (1– 3). No one can dispute that the US health care system is underperforming, especially with regard to chronic conditions such as the rheumatic diseases, or that fundamental changes in health care delivery processes will be required for improvement. A basic question is whether P4P programs will be designed to provide benefits to patients and reward providers for improving efficiency and outcomes, or will they be aimed exclusively at controlling payer costs—in other words, will we get the carrot or the stick?

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