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Home / News & IndustryManaged Care Insight and Analysis
Updated: Sept. 16, 2008
Patient Lives Saved And $24.5 Million In Incentives Awarded

More than 1.1 million patients treated in five clinical areas at hospitals participating in a Centers for Medicare and Medicaid Services (CMS)/ Premier healthcare alliance pay-for-performance project areliving longer and receiving recommended treatments more frequently, according to results released by the two organizations.

CMS also said it awarded more than $24.5 million in incentive payments to top performing hospitals over the project’s first three years.

According to results released by the organizations, more than 250 hospitals participating in the CMS/Premier Hospital Quality Incentive Demonstration (HQID) project have raised overall quality by an average of 15.8 percent over three years based on their delivery of 30 nationally standardized and widely accepted care measures to patients in five clinical areas.

Improvements in quality of care saved the lives of an estimated 2,500 heart attack patients across the first three years of the project, according to an analysis of mortality rates at hospitals participating in the project.

Patients also received approximately 300,000 additional recommended evidence-based clinical quality measures, such as smoking cessation, discharge instructions and pneumococcal vaccination, during that same time frame.

CMS said that it will award incentive payments of more than $7 million to 112 top-performing hospitals in Year 3, representing the top 20 percent of hospitals in each of the project’s five clinical areas. Overall, 206 awards were given to these top-performing hospitals in the third year of the project.

"The findings from the first three years of the HQID project clearly show that transparency with rewards for quality achieves a higher level of performance in American hospitals," said Richard Norling, president and chief executive officer of Premier.

"This important connection between increased quality and performance creates value to patients, as well as the healthcare system," he said.

The range of variance among participating hospitals is also closing, as those hospitals in the lower deciles continue to improve their quality scores and close the gap between themselves and the demonstration’s top performers, Premier said.

This holds true for all types of participants – small and large, urban and rural, teaching and non-teaching, Premier said.

Additional research by Premier using the Hospital Compare dataset for April 2006 to March 2007 showed that HQID participants scored on average 7.48 percentage points higher (91.49 percent to 84.01 percent) than non-participants when evaluating 19 common Hospital Compare measures.

Addresses: Centers for Medicare and Medicaid Services, 7500 Security Blvd., Baltimore, MD 21244; (877) 267-2323, Premier Inc., 2320 Cascade Pointe Blvd., Charlotte, NC 28208; (704) 357-0022,

  This article was taken from:
Pay-For-Performance Reporter

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