Pay for performance in hospital management: A case study

ABSTRACT

Background: This study aims at exploring the aspects of this newly applied payment mechanism compared with the previous ones.

Methods: A mixed qualitative and quantitative study, including a descriptive analysis of P4P aspects compared with non-performance-based payment method and a quantitative comparative analysis of hospital departments’ revenue and employees’ payment, was conducted over a time period of 2013–2015.

Results: The desire to provide high-quality services and association between staff reimbursement and some of the features, including performance, patient satisfaction, full-time participation at work, equity in income distribution among staff in different occupational groups, were among the main characteristics of P4P. But in terms of non-performance payment system, the quantitative analysis of data affirmed no significant correlation between the quantity of provided services, staff salary and department’s revenue.

Conclusion: It is evident that pay for performance can persuade employees to improve the quantity and quality of rendered services with much more emphasis on achieving the health system goals and improving patient health outcomes.

KEYWORDS:

• Performance-based payment method
• Iran health system reform
• health provider
• healthcare institution
• qualitative study

Disclosure statement

No potential conflict of interest was reported by the authors.