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Hospital Incentive Program Featuring Direct Collaboration with Employers

Health Affairs: Hospital Incentive Program Featuring Direct Collaboration with Employers

A health care coalition in Maine has piloted a performance-based incentive payment program that creates a single statewide program, based on common standards. Funded by The Leapfrog Group with grant funds received from the U.S Agency for Healthcare Research and Quality (AHRQ), a case study of the program, published in Health Affairs, is available here.

“Developing A Performance-Based Incentive Program For Hospitals: A Case Study From Maine” describes how incentive payments were jointly funded by purchasers and hospitals, both putting a portion of money at risk. A two-step incentive allocation methodology differentiates adequate and superior performance. The incentive model is flexible enough to accommodate different settings and evolving performance standards.

This case study provides useful insights to payers and hospitals that are considering similar regional initiatives, emphasizing the collaborative context that underscored this venture.

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