Study: Pay for Performance Could Save Lives, Money

By Stacy Lawrence  |  Posted 2006-08-31 Print this article Print

Some initial results from the CMS demonstration project of pay-for-performance show that enforcing a higher quality of care for just five major illnesses and procedures could have saved almost 6,000 lives and $1.35 billion in hospital costs in 2004.

Premier, a health alliance of more than 200 nonprofit hospitals and health care systems, recently released results from its pay-for-performance demonstration project with the Centers for Medicare and Medicaid Services.

The new data suggests that implementing pay-for-performance measures could result in saving thousands of lives and hundreds of millions of dollars.

Pay-for-performance requires that health care providers adhere to a certain standard of care in order to be eligible for the highest levels of compensation.

It, therefore, relies upon a substantial data collection and analysis efforts.

In this particular analysis, Premier examined several specific illnesses and procedures including pneumonia, heart bypass, heart attack (acute myocardial infarction), and hip and knee replacement patients.

If all the patients with these conditions received most or all of widely accepted care process in 2004, they are projecting it would have resulted in nearly 5,700 fewer deaths and saved $1.35 billion in hospital costs.

Click here to read more about a hospital's efforts to update its Web CMS system.

Read the full story on eWEEK.com: Study: Pay for Performance Could Save Lives, Money

Stacy Lawrence is co-editor of CIOInsight.com's Health Care Center. Lawrence has covered IT and the life sciences for various publications, including Business 2.0, Red Herring, The Industry Standard and Nature Biotechnology. Before becoming a journalist, Lawrence attended New York University and continued on in the sociology doctoral program at UC Berkeley.

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