Wednesday, August 30, 2006

Another Problem With Pay for Performance

Pay for performance initiatives are likely to generate the wrong incentives, as this attempt to measure "quality measures" by Medicare has demonstrated. If you make money collecting data, expect financial incentives to exceed health care incentives.

I wish our government officials at CMS made the New York Times bestseller, Freakonomics, required reading. This is a classic example of the wrong incentive being supplied...


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