Quality incentives in managed care typically involve which type of payment?

Quality incentives in managed care typically involve which type of payment?

• A. Bonus Payments Based on Clinical Outcomes
• B. Bonus Or Penalty Payments Based on Clinical Outcomes
• C. Flat Annual Fee
• D. Co-Pays

Answer: (B)

The idea being tested is tying payments to quality outcomes. Quality incentives in managed care are designed to reward good clinical results and sometimes penalize poor performance, so providers have a financial motive to improve care and efficiency. This makes the payment approach that uses both bonuses for meeting or exceeding outcome targets and penalties for underperforming targets the best fit. A flat annual fee isn’t tied to performance, so it doesn’t drive quality improvements. Co-pays are patient costs and do not function as provider incentives.

The idea being tested is tying payments to quality outcomes. Quality incentives in managed care are designed to reward good clinical results and sometimes penalize poor performance, so providers have a financial motive to improve care and efficiency. This makes the payment approach that uses both bonuses for meeting or exceeding outcome targets and penalties for underperforming targets the best fit. A flat annual fee isn’t tied to performance, so it doesn’t drive quality improvements. Co-pays are patient costs and do not function as provider incentives.