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Pay for Performance Incentive Programs in Healthcare:
Market Dynamics and Business Process
Executive Briefing

AUTHOR
Geoffrey Baker, MBA President, Med-Vantage® Inc. 1 California Street, Suite 2800 San Francisco, California 94111

CONTRIBUTORS
John Haughton, MD, MS Founder, DocSite LLC 540 Main Street Winchester, Massachusetts 01890 Peter Mongroo Director, Healthcare Industries Markets Oracle Corporation 500 Oracle Parkway Redwood Shores, California 94065

A Research Report sponsored by ViPSSM, Inc. in partnership with Med-Vantage® 2003

Table of Contents
Introduction.......................................................................................................................2 Goals and Motivations behind Pay for Performance..................................................................4 Market Adoption .................................................................................................................5 Funding and Incentives .......................................................................................................7 Measuring Performance: Physicians and Hospitals..................................................................10 P4P Operations and Business Processes for Health Plans.........................................................12 Key Lessons Learned and Critical Success Factors ..................................................................14 Conclusion........................................................................................................................16 Selected Bibliography ........................................................................................................17

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Pay for Performance Incentive Programs in Healthcare: Market Dynamics and Business Processes
Introduction
This executive briefing summarizes research on provider pay for performance incentive

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