Incentive Programs in Healthcare - Essay Example

Through this program the providers are given a budget for patient care and are also provided bonuses when they meet certain quality targets. A major incentive provided to healthcare providers by the pay-for-performance program is their entitlement to bonuses if the quality or healthcare measures agreed upon by the institute is met or exceeded. For example if the hospital is able to show reductions in the hemoglobin A1c levels in diabetic patients or if they are able to lower the rate of hospital readmissions in a year to year basis.

Another similar initiative has been incorporated in the Medicaid and Children’s Health Insurance program. The program initiated by the Massachusetts Medicaid hospital based pay-for-performance provides incentives for hospitals on the basis of set quality indicators. For instance, providing antibiotics within 6 hours of the patient’s arrival in the case of pneumonia and giving prophylactic antibiotics within one hour of surgery in order to prevent any infection that could result from the surgery.

All these initiatives take into account both patient care and the quality of healthcare and costs associated. They are mutually beneficial to both the patients and the healthcare organizations as these programs concentrate on both the quality afforded to the patients and the cost of healthcare treatment.