Is It Difficult to Monitor Pay for Performance?

Is It Difficult to Monitor Pay for Performance? (0:22)

Some experts advocate a pay for performance system, which reimburses hospitals at higher levels based on outcomes. In this video, HealthMaker Rick Ferreira explains why this might not be such a good plan.

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I think it's going to be very difficult to monitor. I think you're going to have all kinds outliers that, and I know those they are against medical ethicists and economists looking at all this to reduce the outliers, but I think you're going to have difficulty saying to a hospital, I'm going to pay you a higher rate because you've got a better outcome, versus the guy across the street.

I think the outcome is going to be difficult to track.