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Pay for Performance Initiative, Case Study Example

Pages: 1

Words: 321

Case Study

The United States healthcare financing has been on an evolving trend since the late years of the 20th century. In the 1990s, managed care was the system used to cater for the financials patients accrued whilst in hospital (James, 2012). Currently, the Pay for Performance Initiative will soon take over as the preferable financing system to go by in this organization. The key factor behind this system is the fact that payment from clientele is based on the healthcare quality they receive. Indeed, the envisioned program exudes various merits such as people acquiring the services they paid for; however, healthcare providers will face various challenges. There are no clear benchmarks to determine whether a service is of expected quality or not. Thus, it would be extensively taxing for healthcare providers to determine whether the quality of services is per the government’s expectations or not. In addition, there is a possibility that the new financing system in the medical world may attract penalties (James, 2012). These punishments come in the form of financial obligations that healthcare providers need to meet in case they fail to offer standard healthcare services, which will be difficult to determine in the first place.

As much as the new financial system has its setbacks, it is inevitable and soon every medical institution will be required to implement it. Therefore, it is necessary to make the desired preparations to ensure that everyone at the organization is aware of the transformation. The most preferable way to prepare for the change is to carry out a training session. In turn, this will provide workers with ample information related to the expected standard of quality they are supposed to deliver while attending to the clientele. I strongly believe that the stakeholders will embrace the change and the preparation put forth by the organization in readiness of the new financial system.

Reference

James, J. (2012). Pay-for-performance. Health Affairs. Retrieved on 7 Nov. 2013 from http://www.healthaffairs.org/healthpolicybriefs/brief.php?brief_id=78

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