In the United States, pay for performance is an idea whose time has come, as well. Policymakers now almost universally agree that the amplification and extension of the use of financial incentives will promote a higher quality of care. Federal legislation enacted in 2003 set a mid-2006 deadline for the Institute of Medicine to report on financial incentives that the Centers for Medicare and Medicaid Services (CMS) could use to reward high performance by doctors, hospitals, health plans, and other providers. In addition, legislation enacted earlier this year requires that the secretary of Health and Human Services develop a plan for value-based Medicare hospital payments beginning in fiscal year 2009.
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