CMS finally embraces pay for performance

Share this content:
After years of using the stick, it looks like federal regulators are willing to try the carrot. The Centers for Medicare & Medicaid Services has announced a new, four-state demonstration project that will test whether cash incentives help improve quality and efficiency in nursing homes. Facilities can earn stipends for things such as nurse staffing levels, avoidable hospitalizations, resident outcomes and fewer citations during inspections. The demonstration will be tested in Arizona, Mississippi, New York and Wisconsin. The demonstration program will begin this July. Looks like some operators may soon find another way to improve their cash flow.