A recent study involving 250 hospitals showed that a nationwide pay-for-performance demonstration project called Hospital Quality Incentive Demonstration helped safety net hospitals improve patient care in just three years, specifically in the areas of heart attack, heart failure and hip/knee replacement. A P4P program has the potential to "be an effective national reform that will improve quality, reduce variation and avoid unnecessary costs," said Susan DeVore, president and CEO of Premier health care alliance, which conducted the study.

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