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Pay for Performance Incentive Programs in Healthcare:
Market Dynamics and Business Process
Executive Briefing

AUTHOR
Geoffrey Baker, MBA President, Med-Vantage® Inc. 1 California Street, Suite 2800 San Francisco, California 94111

CONTRIBUTORS
John Haughton, MD, MS Founder, DocSite LLC 540 Main Street Winchester, Massachusetts 01890 Peter Mongroo Director, Healthcare Industries Markets Oracle Corporation 500 Oracle Parkway Redwood Shores, California 94065

A Research Report sponsored by ViPSSM, Inc. in partnership with Med-Vantage® 2003

Table of Contents
Introduction.......................................................................................................................2 Goals and Motivations behind Pay for
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This executive briefing features highlights from the full research report, Pay for Performance Programs in Healthcare: Market Dynamics and Business Processes. To obtain the full report from ViPS, please see the back cover for details. Med-Vantage conducted research in late 2002 and early 2003 to evaluate the experiences of physician and hospital P4P incentive programs in the United States. The Med-Vantage research included: • Telephone interviews with executives, physicians and thought leaders at 30 organizations currently operating P4P programs (see Figure 1) • Case study research and in-depth interviews with executives and physicians responsible for P4P programs at six health plan organizations • Review of secondary literature and data related to P4P and other incentive programs in healthcare

FIGURE 1 DISTRIBUTION OF SURVEY RESPONDENTS BY TYPE Participant Type Employer Coalition/Benefits Consultant Health Plans Organizations and Individuals Interviewed Pacific Business Group on Health, Mercer HealthPartners, Blue Cross Blue Shield of Florida, PacifiCare, Blue Cross Blue Shield of Massachusetts, Tufts Healthplan, Horizon Blue Cross Blue Shield of New Jersey, Blue Shield of California, HIP of New York, Excellus Blue Cross Blue Shield, Blue Cross Blue Shield of Hawaii,

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