Implementing a Combination Payment System in Healthcare Essay

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One of the most critical healthcare issues is reducing medical costs per patient while improving the quality of care. The solution to this problem must be carried out at the level of individual hospitals and then advanced to the state and country levels. For this reason, the change that I would like to implement at the level of my organization is to change the payment system to a combination of Fee-For-Service and Pay-For-Performance.

The choice of payment system greatly influences the procedures and principles of a hospital’s work. As Marshall and Broome (2017) point out, a leader must reflect the state of the organization to assess its needs and leverage strengths. My reflection demonstrates that the current payment system in the organization has positive points that need to be preserved. For this reason, I would convince the administration to use a combination of Fee-For-Service and Pay-For-Performance, since it provides ample opportunities for obtaining resources, but at the same time, controls spending through the performance rating (Park, 2018). This system has potential as it realizes the two goals of value-based healthcare, namely, reducing costs and improving services (Teisberg et al., 2020). Hospitals that have access to resources and are focused on performance indicators in the long term will bring better health outcomes to the population and, therefore, reduce morbidity and healthcare costs.

Implementing such an initiative will benefit me as a leader, since large-scale changes require situational awareness, persuasiveness, and emotional intelligence from the leader. In addition, if the initiative goes national, I can develop my skills as one of the leaders in healthcare. However, the main barrier is convincing my organization’s administration and other organizations that such changes are necessary because they require significant effort and long-term results. However, in the first step of the 5-Stage Innovation-Decision Process, I will gather enough knowledge to use it for persuasion in the second step, and a successful micro-scale project will help bring it to the macro scale.

References

Marshall, E. S. & Broome, M.E. (2017). Transformational leadership in nursing: From expert clinician to influential leader (2nd ed.). Springer.

Park, B., Gold, S.B. Bazemore, A., & Liaw, W. (2018). How evolving United States payment models influence primary care and its impact on the quadruple aim. The Journal of the American Board of Family Medicine, 31(4), 588-604.

Teisberg, E., Wallace, S., & O’Hara, S. (2020). Defining and implementing value-based health care: A strategic framework. Academic medicine: Journal of the Association of American Medical Colleges, 95(5), 682–685.

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IvyPanda. 2023. "Implementing a Combination Payment System in Healthcare." June 30, 2023. https://ivypanda.com/essays/implementing-a-combination-payment-system-in-healthcare/.

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