American healthcare is rapidly moving from fee-for-service to pay-for-performance, a concept often tied to accountable care organizations, CMS' value-based purchasing program and outcomes-based contracts with payers. Hospitals are usually on the receiving side of these arrangements — they net rewards or face punishments depending on whether they meet an established set of metrics. But hospitals can also take pay-for-performance concepts into their own hands by enforcing value-based mechanisms elsewhere in their organizations.
Quint Studer provides five tips for hospital leaders that are pursuing performance-based contracts with hospital staff and vendors.
1. If you don't push for a performance-based contract, don't assume the vendor will.
2. Ensure fairness and attainability.
3. Sometimes the incentive should be as simple as keeping a job.
4. Don’t underestimate the power of peers.
5. Remove excuses.
Quint goes into great detail and provides specific examples for each tip in the full article: http://beckershospitalreview.com/hospital-management-administration/stop-paying-for-paltry-performance-5-tips-for-hospital-leaders.html