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REGION: North America
TOPIC: Health
Online NewsHour
FORUM
Posted: April 7, 2009

Hospital Tests 'Warranties'

Forum Introduction
Geisinger Health System hospital; Photo Geisinger A Pennsylvania hospital system is testing a new payment system -- a "warranty" model in which patients and insurers pay up front for an operation and any necessary follow-up care. A hospital executive and a health policy expert discuss the model, and other health policy innovations.
QUESTIONS
How do electronic health records save money?
Would this "warranty" system be good for a patient without insurance?
Should all hospitals use this same model to save costs?
Does this program accept Medicare as payment?
Would the "warranty" model lead to price competition between hospitals?
Does pay-for-performance cause doctors to avoid poorer, sicker patients?
How does pay-for-performance affect nurses and other staff?
Does Geisinger have data on the impact of this program?
Tom Sampson of Eden Prairie, Minn. asks
This piece talked about pay for performance for doctors -- what about nurses and other staff as well?
ANSWERS
William Scanlon responds:
William Scanlon responds:

Improving the quality and efficiency of health care will involve all the professionals involved in delivering care. Physicians are mentioned most often because they lead the teams that provide care.

"Physician pay for performance" is in some ways shorthand. It is the performance of not just the physician but those working with him or her that is to be rewarded. Moving to a higher quality more efficient health care system will likely involve new roles for nurses and other non-physician professionals. There will be more responsibilities that they take on independently. It will be important to ensure their performance is properly recognized and rewarded.

Ronald Paulus responds:
Ronald Paulus responds:

Excellent point! Clinical care is a team-based process by definition and doctors are far from being the only "important" members of that team. The ProvenCare approach really is a team-based pay-for-performance system.

All of our staff, including doctors, are salaried. Most all have performance goals that impact their performance appraisals and ultimately their future compensation. Although we believe we have made a good start, we need to do even more to extend this concept across all staff, just as you suggest.


Next Question and Answer

ONLINE NEWSHOUR LINKS

March 30, 2009
In-depth Coverage: Health Beat


March 25, 2009
U.S. Hospitals Lag in Electronic Health Records Switch


March 24, 2008
Digital Files Put Medical Records at Doctor's Fingertips




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