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February 15, 2007 12:00 AM

Performance measures to include efficiency

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    The Integrated Healthcare Association, the nation’s largest

    pay-for-performance program, will take a big step forward in the

    burgeoning pay-for-performance movement when it adds efficiency measures

    to the formula it now uses for providing incentives to more than 40,000

    California physicians. “We’re beginning to see the next phase of

    pay-for-performance,” said Tom Williams, the IHA’s executive director.

    The IHA said it will add information on cost and resource use to the

    three criteria it has used for about five years—clinical care, patient

    satisfaction and the use of information technology.

    While some doctors’

    organizations have harshly criticized efficiency measures as little more

    than efforts to control costs, the Oakland-based IHA, whose participating

    physicians provide care to more than 6 million Californians, called the

    decision a “first step to realizing the Institute of Medicine’s seminar

    recommendations to include efficiency measures at every level of provider

    aggregation, and to prioritize efficiency measurements in P4P,” said

    Arnold Milstein, an IHA board member and medical director of the Pacific

    Business Group on Health. Milstein focused on the topic in a speech today at

    the IHA’s second annual National Pay for Performance Summit in Los

    Angeles, which attracted about 600 attendees.

    Despite widespread concerns from the medical community, physicians in the

    Golden State apparently have welcomed the new measures. “By doing the

    clinically right thing the first time and reducing waste, we can

    systematically improve the quality of patient care while at the same time

    reduce the cost to purchasers of health insurance,” said Wells Shoemaker,

    medical director of the California Association of Physician Groups.

    The conference also featured a 10-minute address by Gov. Arnold Schwarzenegger, who briefly discussed his proposal for universal coverage in the state. -- by Michael Romano

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