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A glimpse at the future of pay for performance

CMS initiated the concept of pay for performance (P4P) several years ago as a form of reward for providers who met pre-established targets for the delivery of healthcare services. P4P, in its original configuration, rewarded physicians and hospitals for meeting certain performance measures for quality. Since 2005, CMS has made changes to the incentives it is willing to pay extra for, as well as identified several preventable items for which it will not pay.

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