Can financial incentives for providers reduce costs of care for psychiatric patients?

What is it about?

Giving financial rewards to contracted healthcare providers for better patient outcomes is known as "pay-for-performance." In this trial of patients from a large county in California that frequently end up in psychiatric emergency care services, financial rewards for a contractor did no better at reducing costs than the usual services provided by the county.

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Why is it important?

This study was the first trial to test if pay-for-performance can reduce the cost of care for psychiatric patients. Alternatives to reducing the cycle of hospitalization for these patients are needed, or perhaps better implementation of pay-for-performance programs.