Side Effects: Obamacare Could Punish Docs for Better Quality Care

Kathryn Nix / July 16, 2010

“Pay-for-performance” medicine has gained popularity in recent years, and Obamacare makes it a reality for Medicare enrollees.  But that’s not necessarily a good thing.

Pay-for-performance allows third parties to pay physicians based on treatment outcomes.  In theory, this sounds like a great way to encourage doctors to improve outcomes.  But in practice, it’s a bit more complex.

To determine payments, payers must use some sort of yardstick to measure outcomes.  Medicare has done this for years.  Its hospital and physician quality reporting programs require health care providers to report on government-chosen quality measures or face reduced reimbursement rates. (more…)