What is a key aspect of a 'pay-for-performance' model?

A key aspect of a 'pay-for-performance' model is that it ties reimbursements to the quality of care provided. In this model, healthcare providers are rewarded for meeting specific performance measures that reflect the quality, efficiency, and effectiveness of their services. This means that rather than receiving payments solely based on the volume of services delivered, providers are incentivized to improve patient outcomes and demonstrate high standards of care. This approach is designed to shift the focus from the quantity of services to the quality and value of care, thereby potentially improving patient satisfaction and health outcomes.

In contrast, other reimbursement models like fee-for-service reimbursement emphasize payment for each individual service regardless of quality, while flat-rate billing and direct payments offer different structures that do not prioritize performance-based quality metrics.