Financial Incentives May Improve Hospital Mortality Rates

Pay-for-performance models may help reduce hospital mortality rates, according to research from the University of Manchester.

 



Economists and health experts from the Universities of Manchester, Nottingham, Birmingham and Cambridge examined the impact of pay-for-performance models on quality of care. The project was implemented at 24 NHS hospitals in 2008.

The researchers found that while pay-for-performance models seemed to have no impact on quality of care in the U.S., those models improved patient safety and quality in the U.K. Specifically, the pay-for-performance initiative was associated with saving nearly 900 lives over an 18-month period.

The researchers determined several factors may explain the different outcomes in the U.K.:

•    The bonuses in the U.K. were larger than in the U.S. and there was a greater probability of earning a bonus.
•    Despite the competitive nature of the program, staff met regularly within the region to share problems and ideas of best practice.
•    In the U.S., these schemes are voluntary and only 5 percent of hospitals take part, whereas all hospitals in the North West of England took part in the scheme.

The researchers concluded that the impact of pay-for-performance models depends on how these programs are designed and implemented.

More Articles on Patient Safety:

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