Pay for Performance
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Pay for performance
Challenges for pay for performance
The significant challenges faced by the pay for performance system include the following
The syndrome and kind of work that performed in regards to the payment
Suppose the payment system depends on the type of job performed by the employee and focuses on specific performance indicators. In that case, the employee or even the management will neglect other essential components of the situation and focus only on the specified symbols.
Achievement of a negative result on the spirit of poor cooperation
Most of the employees will not cooperate with the others, which will result in the restriction of specific user information that would have improved the performance of the other employees. This will be based on the fact that the employee will keep the knowledge or the skill so that he can outdo the others, thus improving his or her payment scale.
Lack of control
Lack of control will seriously result among almost all the employees more so in the areas that will affect or hinder their performance. This is because if their performance within the system is hindered, the result will be reduced in the payment earned by that employee.
Difficulties that result from the measurement of the performance
One of the most significant challenges faced by organizations and companies management is that the performance of the employees is quite difficult to measure. This will significantly affect the pat for performance more so if there are rewards attached to the same.
Job stress and dissatisfaction
However, much the productivity rate within any organization will be improved through the application of pay for performance systems. The job satisfaction in regards to the view of the employees will be affected.
Potential reduction in the intrinsic drives
The application of the pay-for-performance system will allow the employees to perform all the required tasks if they want to get the desired payment; however, this will affect the talent and creativity of the employees, thus negatively affecting the organization.
Impact of Pay for Performance on the Provider Payment Reform
The pay for performance’s main objective is to improve excellence and effective healthcare cost, and as a result, it has several positive impacts on the provider payment reform. Most government agencies are starting up the program for the providers so that they can yield a positive result (Talukdar, 2012). In the process that there is an improvement in care and a compelling performance within the providers, the providers will automatically realize several financial rewards. Most of the performance that involves the physicians basically focuses on the quality delivery of services, and thus pay for performance is one of the most vital tools that will see the implementation of this to the provider payment reform (Talukdar, 2012).
Some of the measures put in place tend to challenge the medical practitioners because the overall performance set over multiple diseases matters more than the same measures put on individual actions. Therefore the pay for money system yield a better gain concerning the quality of the money that is spent, and in most cases, the physicians are always compensated according to the quality of their performance (Tan Huat & Ling, 2016). Thus, together with the other healthcare quality providers, hospitals are highly motivated by the individual health plans to utilize the application of pay for performance so that they can promote quality healthcare. Suppose the insurance organizations and the hospitals get involved. In that case, some consequences will be realized, including attention to the differences in care, reduction of the administration rate, and weaknesses to improve.
Health Care Providers Reaction to the Value-Based Purchasing System
Most healthcare organizations have recently realized the benefits of the value-based purchasing system, and some of these are:
Reduction on the overall cost
With the application of the value-based purchasing system, the patients tend to have the right and freedom to hold the medical providers and the health practitioners accountable if service quality, together with the cost of the provision is not met. In the application of the value-based system, they feel appreciated and valued because they are also engaged in the coordinating care team.
Increase in patient satisfaction
The value-based system focuses on the reduction and management of the medical errors through rewarding most of the health care organizations that perform better or this that show improvement in their performance. The application of this will ensure that the healthcare organizations put all the necessary measures to ensure that their performance is outstanding both for recognition and compensation. It, therefore, leads to increased patient satisfaction.
Benefits of Pay for Performance on The Patient
There are several benefits that the pay for performance has on patients and this includes,
Employee motivation
Some of the reasons as to why most of the employees remain on top of their performance are quite complex however the most vital one is the recognition of their output to the organization. In the process that performance will be rewarded then the patient within any healthcare service will receive quality services (Wang & Su, 2014). This is because those attending to the patient will be assured of the required payment in the event that /they perform the required duties and even exceed the performance expectation.
According to Cooper Gulen & Rau (2008), if a worker is assured that meeting the performance objectives leads to a better or increased compensation them the employee will put all the required energy and effort to ensure that they surpass their set targets to the organization so that they can be rewarded of the good performance. If the company or the organization proves to pay and recognize performance then the worker together with the clients will remain within the organization.
Retention of top talent within the organization
Most of the organization always has a belief that the top performers within their system will be approached by other organizations and thus in the bid to retain them, the organization always offer better pay and a competitive payment compensation to them.
References
Cooper, M., Gulen, H., & Rau, R. (2008). Performance for Pay? CEO Pay and its Relationship to Future Performance. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.1107617
Talukdar, A. (2012). Impact of performance pay on enhanced employee performance: mediating role of work motivation and pay satisfaction. J. For International Business And Entrepreneurship Development, 6(3/4), 303. https://doi.org/10.1504/jibed.2012.049796
Tan, L., Huat, T., & Ling, C. (2016). Pay for Performance: Is CEO Pay Aligned with Performance in Singapore?. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.2810970
Wang, X., & Su, L. (2014). Impact Evaluation of Provider Payment Reform Under the New Rural Cooperative Medical Scheme in Gansu Province, China. Value In Health, 17(7), A723. https://doi.org/10.1016/j.jval.2014.08.035