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Home > Medical Professionals > Health Policy and Government Relations > CRS Releases Pay For Performance Report

CRS Releases Pay For Performance Report

In November 2006, the Congressional Research Service (CRS) released a “Pay for Performance in Health Care” report. Congress created the CRS in 1914 to have its own source of nonpartisan, objective analysis and research on all legislative issues. 

In the report, a pay for performance system is defined as “a remuneration arrangement in which a portion of the payments is based on performance assessed against a defined measure”. The elements common to all pay for performance programs are: 

1. A set of targets or objectives that define what will be evaluated;
2. Measures and performance standards for establishing the target criteria;
3. Rewards – typically financial incentives – that are at risk.

According to the report, there needs to be agreement and buy-in among those being evaluated that the objectives are fair and measures appropriate, performance is accurately measured and the incentives make the effort worthwhile in order for the program to be successful.

In addition, the report reviews legislation proposed by Congress that would implement pay for performance.  Congress addressed this issue in legislation passed in December 2006 by providing a 1.5% bonus to physicians who voluntarily report at least three Physician Voluntary Reporting Program (PVRP) quality measures beginning July 1, 2007.