Pay for Performance: A Nursing Perspective

Pay for performance models are being put into practice with incredible urgency. According to the Agency for Healthcare Research and Quality (AHRQ), pay for performance is broadly defined as "any type of performance-based provider payment arrangements, including those that target performance on cost measures." (AHRQ, 2006) As healthcare providers are rapidly implementing these programs designed for meeting the requirements of pre-established quality targets, they are now examining how nursing contributes to their success. The purpose of this Nursing That Works article is to describe the history of pay for performance practices and discuss the implications for the nursing profession as a participant in this emerging movement.