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One trend, called "Pay for Performance", is to shift doctors' and hospitals' incentives towards providing more efficient and better care, by measuring quality and adjusting payments accordingly.
Martin said: "We intend to send communication out to members later this week or early next week and then we will start an orderly process of adjusting payments to PPF levels".
Adjusting payments by region would reward some inefficient hospitals in high-value regions, while penalising high-value hospitals in inefficient ones.That still leaves the question of why spending varies so spectacularly.
A by-the-data model for benefits programs, he added, would suggest means-testing Social Security payments as well as adjusting payments locally for differences in costs of living.
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Adjusting payment based on outcome and prevention, rather than the number of hospital admissions for example, should serve as a cogent incentive for innovation in the form of telehealth.
There is a mechanism for adjusting payment to each practice based on the prevalence of disease for each indicator, though this adjustment may not reflect the workload of a practice with a significantly different prevalence from the average [ 5].
PAGE A8 National REPORT FINDS INEQUITIES IN PAYMENTS FOR MEDICARE Although Medicare is a national program, it adjusts payments to health care providers to reflect regional differences in wages, rent and other costs.
These plans adjust payments according to mortality.
Adjust payments for each enrollee based on need.
The regional boards would adjust payments so that plans attracting sicker beneficiaries would get more money.
The formula for paying hospitals under Medicare is complicated, but the basic idea is to adjust payments for differences in wage rates in different geographic areas.
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CEO of Professional Science Editing for Scientists @ prosciediting.com