Quality vs. volume – How should physician compensation be determined?
Abstract: Increasingly, hospitals, health systems and the federal government are pushing for “pay for quality” or “pay per performance” over the more traditional “pay for volume” as the underlying structure for physician compensation. This article offers some examples of hospitals that have switched the payment emphasis to the quality model. It also discusses some of the assumptions on which these models are based. The ongoing issue is that benchmarks for quality aren’t well documented — and are often fuzzy at best. A sidebar displays one of the most influential lists of quality measures in health care, which was developed by the National Academy of Medicine.