Blue Cross of California Introduces Pay-for-Performance Hospit... ( California hospitals implement Blue C...)

Blue Cross of California Introduces Pay-for-Performance Hospital Program

Date:3/19/2008

California hospitals implement Blue Cross of California's Quality-in-Sights

Hospital Incentive Program

THOUSAND OAKS, Calif., March 19 /PRNewswire/ -. Blue Cross of California (Blue Cross) today announced the introduction of its Quality-in-Sights Hospital Incentive Program (Q-HIP) in 23 California hospitals.

Q-HIP is designed to align financial incentives with quality improvements. It uses select indicators that have been identified for public reporting by the California Hospital Assessment and Reporting Taskforce (CHART) to assess hospital performance. These indicators are also promulgated by several national standard setting organizations, including The Joint Commission, the Leapfrog Group and the National Quality Forum (NQF).

To be eligible for Q-HIP, hospitals must submit their data to CHART, which was established in 2004 to develop a statewide hospital performance reporting system. Hospitals can earn Q-HIP adjustments to inpatient hospital fixed payment rates depending on their Q-HIP score, which is based on patient safety, clinical processes and outcomes, and patient experience. There is no downside adjustment based on Q-HIP performance.

Blue Cross's goal is to improve performance across the provider network and minimize the variation in quality. "We are committed to helping our members by supporting change that improves the quality and safety of health care," said Leslie Margolin, president and general manager of Blue Cross. "Consumers have demonstrated an increased demand for value purchasing, and we have responded to that need."

"Blue Cross has already established physician measurement and reward programs," said Margolin. "Now we are ready to introduce a process to measure the quality of hospitals within our network."

Hospitals that currently participate in Q-HIP include: Pacifica Hospital of the Valley, USC University Hospital, Desert Regional Medical Center, Fountain Valley Regional H
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