Pay for Performance A Smart Strategic Initiative
... One such mechanism, pay for performance systems, have become an increasingly popular method for organizations to not only increase employee productivity and fairly reward for work done but also reap the financial benefits that increased productivity can generate. Pay for performance programs have been developed and implemented in many industry sectors including manufacturing, teaching and healthcare. In healthcare organizations, administrators have used pay for performance mechanisms to provide incentives not only to administrative employees that perform functions such as billing and collections and claims processing but also to nurses and other direct healthcare providers. A properly aligned pay for performance system with measurable outcomes can create incentives to encourage employees to perform their duties efficiently while providing superior customer service and high quality patient care.