WASHINGTON, Oct. 16 (UPI) -- Medicare will launch a pay-for-performance demonstration for solo and small-size physician practices, the U.S.
agency announced Monday.
The program, which will base a portion of doctors Medicare reimbursement on their fulfillment of quality criteria, follows similar programs already begun for hospitals and large physician practices.
The demonstration, slated to begin in 2007, will include about 800 practices in Arkansas, California, Massachusetts and Utah.
Participating physician groups will continue to be paid on a fee-for-service basis but will be asked to submit data annually on up to 26 quality measures related to the care of patients with diabetes, congestive heart failure and coronary artery disease, as well as the provision of preventive health services such as immunizations and cancer screenings to high-risk patients with a range of chronic diseases.
In its first year, the program will be a "pay-for-reporting" initiative to provide baseline information on quality and to help physicians become familiar with the quality-measurement process.
In subsequent years, based on their performance on the quality measures, practices will be eligible to earn an annual incentive of up to $10,000 per physician and up to $50,000 per practice year.
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