Abstract

Global advances in health policy reform, health system improvement and health management education and practice need to be closely aligned to successfully change national health policies and improve the performance of health care delivery organizations. This paper describes the globally acknowledged need for incentive-based organizational performance and relevant implications for health care management education (HCME) and practice. It also outlines the major rationale underlying Value-Based Payment (VBP) or Pay for Performance (P4P) health policy initiatives and their basic elements. Clearly, the major global health policy shift that is underway will likely ultimately have major impacts on the strategic and operational management and performance of health care delivery organizations. Thus, practical specific suggestions are made regarding changes that need to be introduced and strengthened in contemporary health care management education and development programs to help organizational managers in the future.

Highlights

  • OF PAY-FOR-PERFORMANCE/VALUE-BASED PAYMENT FOR HEALTH SERVICESThe basic idea of linking the level of financial payment for a health care service to the quality of the provider’s service has been of long-standing interest to health care policy makers

  • This paper describes the globally acknowledged need for incentive-based organizational performance and relevant implications for health care management education (HCME) and practice

  • Value Based Payment and Health Management purpose of this paper is to explore the global interaction of reimbursement changes, global health management education, training programs, and health management practice

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Summary

BACKGROUND

There is a growing recognition around the global that managers of healthcare organizations must receive management training to be effective systems leaders. There is considerable variation in health system organization, ownership, and payments across the world [2], it is clear that all health systems are facing major macrolevel drivers of change These drivers include the rapid diffusion of health care information systems, aging populations, increased demand for medical treatments, and widespread recognition that health care systems (and their constituent provider organizations—ambulatory care facilities and hospitals) must significantly and continually improve their performance. As Jacobsen [3] has noted, the World Health Organization reports that the diverse types of health care financing systems can be contrasted across four different domains They are: [1] the sources of funds, [2] payment of services, [3] risk/cost burden, and [4] level of coverage. Improving levels of unwanted variation of quality and safety; Shifting the focus from sickness to wellness care; and Lowering the costs of health care services

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