Cost Reduction In Health Care

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Today workers are motivated by many different forms and intentions. The cause of motivation may be considered as desire or need. All over the world, there are many organizations that have researched types of motivations that will motivate employees to the best of their ability and to help them perform to the upmost quality in the delivery of health care. Many organizations have done this because employee performance and productivity relates and defines who and what there organization is all about, but most importantly the organizations profitability. There are numerous ways to motivate employees, but the most rewarding way to motivate employees to enhance their performance, is to suggest a pay-for-performance program. Over the past years we …show more content…
I believe that such cost reduction will make room for more health care advances. Today our health care system is characterized by increasing health care costs. The impact of system cost reduction will expand health care as a whole so that patients can receive the best quality care, whether is by expanding technology so that health care facilities can have new and improved equipment for patient care or by the health care team providing efficient care.
How Pay-for Performance Affects Health Care Providers and their Customers
Pay-for-performance affects health care providers and their customers by improving quality. Improving quality increases value. The value of any company or organization is important for it to succeed. The value of the company is the motivation for employees to want to have high performance. Due to rewards, employees or providers will become more aware and responsible for their performance due to the pay-for-performance model. This motivation affects not only the provider and employees but this will have a major effect on the patients who are receiving care. Because of the pay-for-performance model, this will allow the health care providers to make a big effort to make sure that their patients are receiving the best quality care. Pay-for-performance
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This strategy to improve health care quality has been tried, discussed, and debated among health policy analysts over the past decade. The concept appears to be a logical approach, and its presentation even suggests that it is rooted in free-market ideas. It is grounded in the notion that providers should compete against each other based on quality and the overall value of their services, and that payment for health care services should reflect value, not volume. Such objectives would be naturally achieved in a free market, if one existed today in health care. In fact, however, the Medicare pay-for-performance strategy is not market-driven; it is a strategy to replace the function of a market with government management of health care delivery. This approach will not solve the problem of sluggish quality improvement; nor will it drive patients to better value care. It will, however, introduce perverse new incentives into the delivery of health care that direct resources away from real improvement and even harm quality. (Nix, 2013) This is one example that shows how pay-for-performance has evolved over the years also; pay-for-performance programs are likely to expand even more across US health care in the near future is for the health care system to move toward a quality based system for the services that are provided. This will tie quality and value hand and

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