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R. Lewis Dark: Another Milestone in Physician Pay-for-Performance
EFFORTS TO EXPAND AND IMPROVE physician pay-for-performance programs
are ongoing. The latest big news is the announcement by a consortium of
California's largest health insurers, employers, and physician groups that its
existing pay-for-performance program will expand to pay quality-based
bonuses equal to 10% of physicians' income within five years.
This goal was contained in a report released on February 6 by the
Integrated Healthcare Association (IHA) of Sacramento, California.
The report was a five-year strategic plan that included the outcomes from
the first five years of its pay-for-performance (P4P) plan. Currently
IHA's plan includes 225 participating physician groups which employ
about half of the state's 70,000 physicians. These physicians provide care
to 6.2 million commercially-insured patients.
IHA's P4P program rewards physician groups for improvements in
three areas: patient satisfaction (30% weighting), utilization of information
technology (20%), and improvements in specific clinical measures
(50%), ranging from providing immunizations to screening for cancer.
Currently it pays a bonus that equals about 1.5% of a physician group's
annual income. IHA's strategic plan calls for the bonus amount to grow
to 10% of a physician group's income within five years.
The first year for performance measurements was 2003. IHA paid
bonuses totaling $37.7 million to 80 physician groups for 2003. Bonus
payments for 2004 were $54 million, paid to 179 participating physician
groups. Bonus awards for 2005 have not yet been announced.
During the first 24 months of the program, there was substantial documented
improvement in all three areas. In the clinical area, 87% of participating
physician groups showed improvement. Patient satisfaction
scores were increased in 66% of the groups. IT capability showed substantial
improvement. In year one, only 34% of the groups were using IT
solutions. This had increased to 54% by the end of year two.
For lab administrators and pathologists, the success of this broadbased
P4P program in the nation's most populous—and progressive—
state is a noteworthy development. It points to further expansion of this
trend, not just within California, but across the United States.
Lab"Day of Disaster"
Provides Useful Lessons
Valuable insights about how to improve
contingency and disaster response plans
CEO SUMMARY: On Friday, May 5, laboratory administrators and pathologists who guided their labs through some of the
nation's biggest natural disasters and emergencies will gather
in Miami to share their experiences in contingency planning
and disaster response. It is no understatement to say this
knowledge can help your lab save lives and protect the wellbeing
of lab staff during future emergencies and disasters.
Spectrum's IT Strategy
Now Includes EMRs
First laboratory in nation to offer
an EMR system to client-physicians
CEO SUMMARY: By offering client-physicians an electronic medical records (EMR) system, Spectrum Lab Network expects
to gain competitive advantage. The EMR solution supports
Spectrum's strategy of providing enhanced and integrated
informatics services to all users, including physicians, payers,
and patients. Until now, no lab has ever offered to be a
source of EMR sales and service to office-based physicians.
Letters to the Editor: Technical/Professional Billing Split Is A Threat to Pathology
First Lab Reports on Its Unannounced Inspection
It was January 3, 2006, when CAP inspectors
arrived at Kern Medical Center to inspect the lab
CEO SUMMARY: Here is the lab industry's first report from laboratory which has undergone an unannounced inspection
under the College of American Pathologist's new accreditation
program. Lab management at Kern Medical Center say
the process went smoothly—but that effective preparation
and a detailed contingency plan are"musts." Once the
inspection starts, conventional procedures are followed.
MDS Intends to Divest
All Lab Testing Assets
One of Canada's major lab companies
is actively selling its laboratory business
CEO SUMMARY: As part of a major corporate restructuring, MDS Inc. is selling three business units, including MDS
Diagnostic Services. Within the Canadian healthcare system,
this is a major event. MDS operates some of the nation's
largest laboratory facilities in its most populous provinces.
However, finding buyers may be difficult. Since announcing
divestiture plans five months ago, MDS has yet to sell a lab.
INTELLIGENCE:
BRITISH NECKTIES MUST
GO IN FIGHT AGAINST
MSRA INFECTIONS
MORE ON: Path Partners
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