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Pay-for-performance programs aimed at rewarding providers financially for quality care have become popular in the U.S., but limited data document the effectiveness of these types of incentive systems. A physician-hospital organization (PHO) affiliated with a children’s hospital examined the effectiveness of aligning a pay-for-performance program with objectives of an asthma improvement initiative among 13,380 children with asthma from 44 pediatric practices.
Individual practices (not individual providers) could earn up to a 7% fee schedule increase for participating in the asthma improvement program, for overall network performance, and for instituting a quality-improvement program. Outcomes were the percentage of children who (1) had a writ…