July 25, 2009

Nice Example of Pay-for-Outcome in Practice

Searching the Newshour videos I found this jewel from March:

A guarantee on a treatment is one form of pay-for-outcome. Extra pay for better outcomes could be set up to motivate more rapid innovation to find better treatments to replace those that have low success rates. A broad system of pay-for-outcomes is much more easily set-up than most people would guess. Pay-for-outcome can be applied to all medical treatments, with mutiple levels of outcome criteria to cover fuzzy outcomes and incentives to treat difficult conditions, and pay-for-outcome will evolve health care practices towards better quality and cost-effectiveness over time.

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