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Pay 4 Performance (P4P)

"Pay 4 Performance" includes any type of performance-based provider payment arrangements including those that target performance on cost measures. The purpose of the Pay 4 Performance initiatives is to improve the quality of health care while reducing inefficiencies that contribute to a continued rise in health care costs. To meet the goals of improved quality and increased affordability of health care, Pay 4 Performance programs create incentives to increase utilization of preventive screening.

The Medicare Payment Advisory Commission (MedPAC) has recommended that CMS (Centers for Medicare and Medicaid Services) focus on encouraging information technology adoption as a first step in introducing P4P for physicians who participate with traditional Medicare.
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