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Newsletters

January 3, 2013

Cincinnati Hospital CEO Pay Linked to Quality

Mission and vision statements can only tell you so much about a hospital’s priorities.

The word of the moment at local hospitals is “quality,” because of provisions in health care reform that pay for it.  And increasingly, hospital CEOs are seeing their bonuses hinge partly on how well their institutions take care of patients.

The Affordable Care Act has created a rush to deliver quality as the federal Centers for Medicare and Medicaid Services, which provides a large portion of hospitals’ reimbursement, defines it.  The law ties Medicare reimbursements to factors such as avoiding readmissions – returning to the hospital within 30 days for care of the same condition – and avoiding medical errors.

Adam Higman, of Florida-based Soyring Consulting, said Medicare will put more of hospitals’ reimbursement at risk based on quality of care.  So health care leaders can expect more of their own pay to relate to it, even if their board chooses not to make the link explicit, sticking instead with financial metrics.

“You see quality measures being tied in now, but it’s really just foreshadowing what’s going to happen,” Higman said.  “This is only going to become larger with time.”

For more information, read the full article from the Cincinnati Business Journal.

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