Number: RL33713
Title: Pay-for-Performance in Health Care
Authors: Jim Hahn, Domestic Social Policy Division 
Abstract: This report examines the factors that need to be considered when evaluating the advantages and disadvantages of a pay-for-performance system in health care. The report first discusses the conceptual foundation for pay-for-performance systems and then addresses their strengths, potential shortcomings, and unintended consequences. Following a discussion of the potential for pay-for-performance systems to control the growth in health care costs, the report examines the track record of pay-forperformance programs in health care, keeping an emphasis on experiences in the private sector and in public demonstration projects. The report then summarizes the pay-for-performance proposals contained in bills that have been introduced before Congress, and examines potential legislation likely to come before the Congress in the coming year.
Pages: 29
Date: December 12, 2006