Payment for Performance (P4P)

6 Pages1474 Words42 Views

Added on 2020-05-11

Payment for Performance (P4P)

Added on 2020-05-11

BookmarkRelated Documents

Running Head: FUNDING MODELS1Funding ModelsAuthor’s NameInstitutional AffiliationDate

FUNDING MODELS2Funding ModelsAs Eagar et al. (2013) put, there are four funding models that are important in funding thehealthcare system. The models include payment for performance (P4P) best practice pricing, normative pricing, and quality structure pricing models. However, this paper would focus on payment for performance, and it is applied in Australia. P4P or sometimes it is identified as safety and quality pricing operates on incentives and disincentives that a hospital gets depending on the outcomes of their services (Eagar et al, 2013). This model pays the institutions based on their practices or services and the areas of concern in this model are safety and quality. Hospitals whose services are easily accessible and their quality is commendable, get incentives, while those who do not, do get any incentives. The Australian public hospitals use the payment for performance model, to support their operational needs. To add further to the description of this model, its principal objective is to establish an express link between quality and safety and funding. If the patient outcomes are found to be good, definitely a hospital facility would be rewarded for the wonderful job done. Unfortunately, those hospitals that would have bad patient outcomes are likely to be penalized. In a nutshell, the model seeks to reward good quality and penalize poor quality (Lagarde, et al, 2013). In the Australian experience, there is a direct link between safety and quality and pricing and funding. Today, the Queensland Health, Australia is seeking to employ the normative strategies to introduce incentives ("Australian commission on safety and quality in healthcare", 2013). At the facility, the strategy is to incentivize case surgery conducted during the day, to reduce time spent at hospitals. Ideally, providing incentives for the day case surgery is to reduce

FUNDING MODELS3stay at the hospital aims at improving performance. Thus, when incentives are offered due to excellent performance, definitely the funding model becomes P4P. Also, Queensland introduced a practice called CPIP (Clinical Practice Improvement Payment System) which seeks to provide incentives for better performance. Furthermore, it is reported that in 2007, Australia adopted a case-mix payment whose main objective was to achieve excellent performance. This is a confirmation that Australia is applying the P4P in its public hospitals to enhance their performance. In essence, to know that a country is applying theP4P model, the main focus should be to establish if there are incentives offered to achieve some desired performance. In Australia, there are efforts that are seeking to improve performance, by directing giving incentives to hospitals to achieve to improve their performance.Furthermore, in Western Australia, there are reports that between 2010 and 2011, WAHD(Western Australian Health Department), is implementing funding that is centered on activity carried out. For instance, is reported that health facilities handling in-patients cases that are acutereceived more funding, to boost their FOC (full operational capability). Ideally, there has been some significant increase in initiatives seeking to enhance safety and quality at Australian hospitals to bolster their performance for the benefit of patients (Norman, et al, 2014). Thus, due to the increased efforts in Australia to enhance the performance of their hospitals, it is imperativeto state that they are employing the payment for performance model in her public hospitals. Manifestation of P4PNevertheless, the payment for performance is likely to manifest in four areas that include:Pay-for- results, pay-for-transparency, gain sharing and pay-for-competence. For pay-for-results,

End of preview

Want to access all the pages? Upload your documents or become a member.

Organisational Governance and Performance Management Assignment

|1376

|47

Funding Models for Australian Public Hospitals

|1393

|469

Funding Healthcare System in Australia

|2078

|177

Organizational Governance and Performance Management

|1448

|410

The Australian Healthcare Funding Models

|1604

|110

Funding Models in Australian Public Hospitals

|1459

|273

Payment for Performance (P4P)