Health Affairs

Health Affairs, 26, no. 3 (2007): 817-824 doi: 10.1377/hlthaff.26.3.817 © 2007 by Project HOPE	New Online   Getting Health Reform Done   After the State of the Union   Incremental Reform   E-Health in Developing World   Most-Read Articles in 2009

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Developing A Performance-Based Incentive Program For Hospitals: A Case Study From Maine

Gino A. Nalli, Dennis Patrick Scanlon and Douglas Libby

A health care coalition in Maine has piloted a performance-based incentive payment program that creates a single statewide program, based on common standards. Incentive payments were funded by a hospital’s financial guarantee that was matched by employers. A two-step incentive allocation methodology differentiates adequate and superior performance. The incentive model is sufficiently flexible 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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