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3 possible hospital payment systems of the future

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Migraine Mask

“Migraine Mask,” by Judith Klausner, at Bromfield Gallery, Boston.

Len M. Nichols and Ann S. O’Malley present three possible scenarios for hospital payment systems in the future.

The trick is that, as they write, “Employers want simplicity and transparency, with comparative performance data available in the public domain. Insurers favor simplicity but prefer to keep the analysis of comparative performance data and pricing private. Thirty-five pay-for-performance experiments have been devised in the private sector, to reward hospitals for higher quality and move toward more effective payment systems. Definitive results are not yet known, and caveats remain, but early signs are promising. We develop three scenarios for future hospital payment systems and identify policy actions to improve outcomes.”

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