Medicare Should Gradually Adopt Pay-for-Performance System
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September 21 -- Because Medicare’s current fee-for-service payment system does little to promote improvements in health care quality, it should be gradually replaced with a new pay-for-performance system for reimbursing participating health care providers, says a new report from the Institute of Medicine. The new system should be phased in to build on lessons learned along the way and to avoid unintended negative consequences.