What type of incentive does Pay for Performance provide?

Pay for Performance (P4P) is a healthcare management strategy designed to improve the quality of care provided by healthcare professionals, including nurses and physicians. The essence of P4P is to offer performance-oriented incentives that are directly linked to the quality and efficiency of healthcare services delivered. This approach encourages providers to focus on achieving specific health outcomes, enhancing patient satisfaction, and adhering to best practices in clinical care.

Incentives under a P4P model often involve measuring various performance metrics such as patient health outcomes, adherence to clinical guidelines, and patient satisfaction scores. By doing so, healthcare organizations aim to foster an environment where healthcare providers are motivated to not only meet but exceed established standards of care. As a result, P4P directly aligns compensation with the quality of service provided, ultimately benefiting patients and the healthcare system as a whole.

The other options do not accurately reflect the core purpose of Pay for Performance. While financial bonuses based on hospital revenue might represent a different incentive model focused on fiscal outcomes rather than quality, and incentives for employee retention and subsidized healthcare plans cater to workforce stability and support for healthcare providers, none of them encapsulate the primary goal of improving healthcare quality as effectively as performance-oriented incentives do.