Performance Incentive Programs in Healthcare Research Paper

Performance Incentive Programs in Healthcare - Research Paper Example In the second report of the Committee on Quality of Health Care in America, the â€Å"quality gap† of the healthcare practice in America was revealed with over 70 studies documenting quality shortcomings.   The quality gap was more prominent in the care that people should receive and the care that they do not receive.   In the second report of the Committee on Quality of Health Care in America, the â€Å"quality gap† of the healthcare practice in America was revealed with over 70 studies documenting quality shortcomings.   The quality gap was more prominent in the care that people should receive and the care that they do not receive.    B. Flaws in the structure of the current health care payment system- fee for service part of the structural flaw that led to quality gaps and the deteriorated state of US healthcare system was partly attributed to the systems of payment to medical providers that do not encourage quality but rather volume.1. Fee for service does not consider quality, efficiency, and cost management quality gaps and deteriorated state of health care that is susceptible to error that accounted for 44,000 to 98,000 deaths per year in the US could have been attributed to the fee for service payment system that does not consider quality, efficiency and cost management (IOM, 2001).   The fee for service payment systems stresses more on quantity and volume rather than the quality of care that a medical provider gives to a patient. 2. Managed Care Organizations differHMOs, PPOs are third-party managed care organizations that also differ in payment to medical providers.   This payment system is not driven to provide quality care but to reduce its cost which could be inimical to the quality of care rendered since the fees are already predetermined.