Looking at lessons on quality from the Medicare pay-for-performance hospital demonstration.

In 2003, the new CMS/Premier Hospital Quality Incentive Demonstration Project--a new type of pay-for-performance pilot project--was set up to financially reward hospitals that improved their care in five clinical areas. The top government players announcing the demo may have left for other endeavors, but 268 hospitals affiliated with Premier are participating in the initiative. With preliminary results in from the first year and the first payments due to be sent out this fall, The Quality Letter for Healthcare Leaders looks at what participating hospitals have accomplished in this pilot program with that financial carrot.