More than 75% of health care incentives are so small or poorly communicated that they go unnoticed by providers. As a result, more than $20 billion in incentives may be wasted annually, according to a study.
Performance incentives (and penalties) are a widely accepted tool to achieve health care cost and quality goals. They are a key element in the Patient Protection and Affordable Care Act and also a central part of the design and rationale behind accountable care organizations where plan participants earn incentives for achieving performance goals.
