This study, summarized in the policy brief below, models the impact of different pay-for-performance (P4P) incentives on the financial health of Critical Access Hospitals (CAHs).
- Pay-for-performance (P4P) incentives likely reduce the financial status of CAHs already in financial stress. However, P4P incentives are likely to have only a modest impact on the financial stability of CAHs.
- If P4P programs lead to increased hospital quality, those benefits would not have to be accomplished at the expense of putting CAHs in greater financial jeopardy.
- CAHs should be included in future P4P initiatives to provide a clear understanding of how payment incentives affect the quality of care in small rural hospitals.